NEWS

Budget 2017/2018- What Comes Down And What Goes Up?

Health Employers who prove medical insurance to their employees will be exempted from fringe benefit taxes. All items imported to Fiji for health promotion programmes are exempted from fiscal import
30 Jun 2017 11:26
Budget 2017/2018- What Comes Down And What Goes Up?
Imported secondhand cars parked at the Port of Suva. Photo: Ronald Kumar

Health

Employers who prove medical insurance to their employees will be exempted from fringe benefit taxes.

All items imported to Fiji for health promotion programmes are exempted from fiscal import duty and import excise duty.

The fiscal import duty on energy bars is reduced from 32 per cent to five per cent.

The fiscal import duty on readymade towels will be reduced from 32 per cent to 15 per cent.

The fiscal import duty on baby cots and baby shoes will be reduced from 32 per cent to five per cent.

The fiscal import duty on baby wipes is reduced from 32 per cent to zero per cent.

Excise tax on cigarettes, tobacco and alcohol will increase by 15 per cent.

Excise tax on sweetened and carbonated drinks will increase by 15 per cent.

 

Construction

Fiscal import duty on fabricated steel structures is reduced from 32 per cent to five per cent.

Fiscal import duty on insulated (electrical) cables is reduced from 32 per cent to 15 per cent, provided Fijian standards are met.

Fiscal import duty on glues, epoxies, sealer, protective coatings, polishes and creams and similar appropriations is reduced from 15 per cent to five per cent.

Fiscal import duty on steel and aluminium louver frames is reduced from 32 per cent to five per cent, while import excise duty is increased from zero per cent to five per cent.

Other Tax Measures

Fiscal import duty on safety matches reduced from $13.02, $9.52 and $2.33 per gross to 32 per cent.

Fiscal import duty on canned sardines has been reduced from 32 per cent to 15 per cent.

Primary Industry

Fish supplied to Pacific Fishing Company (PAFCO) will be VAT zero-rated and suppliers will be accorded an Export Income Deduction incentive.

To encourage greater participation from smaller, local water bottling companies, the threshold for the Water Resource Tax has been increased from 3,500,000 litres per month to 9,999,999 per month as follows:

  • A tax of 1 cent per litre will apply on extraction of up to 9,999,999 litres of water per month; and
  • A tax of 18 cents per litre will apply on extraction of 10,000,000 litres of water and above per month.

Sports and Major Events

Duties on items imported for the hosting of international sporting tournaments will be eliminated.

Stamp Duty

Stamp Duty payments are eliminated on property transfers through love and affection

Dividend Regime

All dividend taxation has been abolished. The tax of three per cent (resident) and nine per cent (non-resident) will be removed, making all dividend income exempt from taxation

Tax Compliance

The Amnesty granted for the declaration of foreign assets and income has been renewed and will now last till December 31, 2017.

Fiji Revenue and Customs Authority will be known as Fiji Revenue and Customs Service from August

Edited by Karalaini Waqanidrola



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