NATION

FRCA Surpasses Original Target By $75.3m In 2014

The Fiji Revenue and Customs Authority (FRCA) surpassed its 2014 Original Annual Revenue target by $75.3 million, which was announced by the FRCA CEO, Mr Jitoko Tikolevu today. The revenue
31 Jan 2015 11:39
FRCA Surpasses Original Target By $75.3m In 2014
Fiji Revenue and Customs Authority chief executive Jitoko Tikolevu.

The Fiji Revenue and Customs Authority (FRCA) surpassed its 2014 Original Annual Revenue target by $75.3 million, which was announced by the FRCA CEO, Mr Jitoko Tikolevu today.

The revenue collection for 2014 totalled $2.115 billion  against the original forecast of $2.039bn, which is an improvement of 13.7 per cent over 2013. The back-to-back significant levels of revenue growth rates of 7.1 per cent in 2013 and 13.7 per cent in 2014 shows increased economic activity.

“The performance is indeed pleasing and is a clear reflection of the continued growth of our economy,” Mr Tikolevu said.

“It also supports the notion that our tax reforms are bearing fruits and that tax compliance is improving with a reduced arrears level as at December 2014.”

As part of the 2015 Budget process, the original forecast was revised upwards to $2.140bn in November last year.

“The $2.115bn revenue collection is a record achievement for the Authority as this is the first time in which the $2bn mark has been surpassed.

“This is despite the fact that we have adopted a new tax regime, which involved major tax cuts and the broadening of the tax base,” Mr Tikolevu said.

Consistent with the 2014 Budget expectations, Value Added Tax was the major contributor to the Government coffers with collection totalling $794.2m.

Revenue from Income Tax totalled $446.6m while trade taxes totalled $513.6m. Other taxes such as Service Turnover Tax, Fish Levies, Departure Tax, Stamp Duty and Capital Gains Tax contributed $360.5m.

There are combinations of factors that are driving the current revenue collections.

There is no doubt that the current escalation in tax collection levels have been largely attributed to the back-to-back solid economic performance of four years of positive GDP growth; the continued pro-growth and expansionary government policies; the restructuring of tax system towards low rate and base broadening; aggressive tax compliance and debt management strategies and effective Public Relations programmes that is very much inclusive and interactive.

“Apart from the tax cuts and bold tax incentives, increased Government expenditure and investment have also contributed to the tax collection.” Mr Tikolevu said.

The concessions offered by the Government were to help growth as well as improve the livelihoods of all Fijians. 2015 poses a huge challenge for the Authority with a much higher target of $2.4bn.

Feedback: newsroom@fijisun.com.fj

 




Fijisun E-edition
Tanoa Waterfront Lautoka Fiji
Subscribe-to-Newspaper
Fiji Sun Instagram
Fiji Plus
Subscribe-to-Newspaper
error: