SUNBIZ

Brief From Experts

Government is committed to ensuring that public debt is sustainable and prudently managed over the medium term. The debt to GDP ratio has been declining as a result of the
23 Nov 2014 11:21
Brief From Experts

Government is committed to ensuring that public debt is sustainable and prudently managed over the medium term. The debt to GDP ratio has been declining as a result of the fiscal consolidation stance adopted over the years, sustained economic growth and effective risk management.
As at 31st December 2013, Government debt stood at $3.8 billion, equivalent to 51.4 percent of GDP, a decline from 53.4 percent of GDP in the preceding year. Of this amount, $2.7 billion comprise of domestic debt while $1.1 billion is external debt.
At the end of 2014, Government debt is expected to further decline to 49.7 percent of GDP.
Government’s debt position from 2011 to 2014 is as follows:

  2014 Forecast ($M)  2013 Forecast ($M) 2013 Forecast ($M) 2011 Forecast ($M)
Domestic Debt
2,841 2,744 2,744 2,734
External Debt
1,168 1,081 935 832
Total Debt
4,009 3,825 3,679 3,566
Debt (As a % of GDP)
49.7
51.4 53.4 54.5
         

Income tax measures – Generally Effective January 1

Tax Deduction for Contribution to Farmers Emergency Fund Account:
n200% tax deduction for voluntary contribution of cash donation by taxpayers towards a Farmers Emergency Fund Account for disaster relief, with minimum contribution of $10,000.
Small and Medium Enterprises (SME’s) Incentives:
– The scope of the SME tax incentive is extended to cover the entire agricultural sector
– Currently the incentive is available to only selected activities within the Agriculture sector
ICT Incentives:
– Extended the scope of ICT incentives to include setting up of ICT accredited training institutions and ICT start-ups involved in the application design and software development companies.
Export Income Deduction:
– Export income deduction will be increased from 40% to 50% for 2015
Hotel Investment Tax Incentives:
– The definition of “Project” will be expanded to include the buying and selling of residential units in hotel and integrated tourism developments
– The Short Life Investment Package incentives will be expanded to include new apartments provided the length of stay is not more than six (6) months
Bio-Fuel Production Incentive:
– This incentive will be extended to 31 December 2018
Accelerated Depreciation for Buildings:
– The accelerated depreciation on buildings (plant and machineries) will be extended to 31 December 2018
Resident Interest Withholding Tax – Exemption:
– Individuals with total earning of $16,000 and below will be exempt from paying resident interest withholding tax on any interest earned from savings
Fringe Benefit Tax Deduction:
– Section 19 of the Income Tax Act will be amended to formalize the non-deductibility of FBT payments made by employers

 




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