NEWS

Consistency Maintained In Tax Policies

Government has maintained consistency within the taxation system and policies without deviating too much in the 2016-2017 Budget announced last night. The focus going forward is on voluntary compliance and
23 Jun 2016 13:57
Consistency Maintained In Tax Policies
Taxation

Government has maintained consistency within the taxation system and policies without deviating too much in the 2016-2017 Budget announced last night.

The focus going forward is on voluntary compliance and tax enforcements with a simple, transparent and equitable tax system. The Budget is also focussed on broadening our economic base.

The Minister of Finance, Aiyaz Sayed-Khaiyum, speaking to the Fiji Sun said Government believed in maintaining consistency in policies which in turn gave people more confidence.

Mr Sayed-Khaiyum announced the new 2016-2017 Budget which will commence in the new Government Fiscal Year – August 1, 2016 and end on July 31, 2017.

The changes in duty rates will commence today while the other changes will take effect from August 1.

 

Revenue policy

To support the medium term fiscal framework Government’s revenue policies are expected to be guided by a number of principles.

Ensuring a simple, transparent and equitable tax system is one of them. This is followed by broadening the tax base while maintaining low tax rates.

Government aims to modernise tax laws to ensure clarity and certainty in its interpretation and application.

This will be in addition to adopting best practices in tax administration, promoting tax compliance to improve collection of revenue and arrears and supporting investment and business development.

To ensure consistency of policy and support for post Tropical Cyclone Winston reconstruction, the revenue measures for the 2016-2017 Budget will encourage tax compliance.

Government will also continue incentives in support of home ownership, improved medical services and new business development in the manufacturing and service sectors.

It will also ensure consumers receive the benefit of tax and import duty reductions through lower retail prices.

Government has assured it will continue to simplify tax administration processes while ensuring incentives and concessions are relevant and remain well-targeted.

It will also manage the importation and consumption of health and environmentally- hazardous goods through regular tariff reviews.

 

Debt policy

As part of its key debt policies, the 2016-2017 Budget will focus on the domestic market for major budget financing need.

This, it said, is given the existing liquidity and the available appetite in the bond market.

At the same time, it will access concessional overseas funding to cover key capital investments.

Government is also looking at expanding the investment base for domestic securities market and introduce re-opening of Government bonds in the domestic securities market.

Government has assured of efficient cash flow management to avoid any unnecessary borrowing.

It also stressed it will undertake sound management of contingent liabilities through stringent risk assessment and adherence to guarantee requirements.

Government said as a component of the overall fiscal policy, the management of public debt in the medium term would continue to focus on achieving a sustainable level of public debt.

Feedback:  rachnal@fijisun.com.fj

Fiji Sun Instagram
Fiji Plus
Subscribe-to-Newspaper
error: