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Visvanath Das: Reforms Lead To Revenue Increase

“If you look at the Macroeconomic performance, internationally, economy is growing, and showing a broad base growth,” Mr Das said.
29 Mar 2019 16:05
Visvanath Das: Reforms Lead To Revenue Increase

Reforms by the Fiji Revenue and Customs Service has been at­tributed to an increase in tax revenue to $2.8 billion for the 2017-2018 fiscal year.

This was a 9.67 per cent increase as compared to the previous financial year.

This was highlighted by the FRCS chief executive officer Visvanath Das while presenting to the Standing Com­mittee on Public Accounts at the FRCS headquarters yesterday.

Mr Das while speaking on FRCS audit report on the management of duty con­cession scheme said the rate growth shows that Government would be able to attain the $3 bn revenue in the next 10 years.

Mr Das said with the increase in cus­tom duty concession, investment, em­ployment and more trade was created.

“If you look at the Macroeconomic performance, internationally, economy is growing, and showing a broad base growth,” Mr Das said.

“There has been a surge in the growth and that has been reflected in the cus­tom duty.

“Economic growth worldwide leads to a lot of opportunities for tax revenue domestically, creating an environment where there will be a free flow of in­vestment, capital, and a lot of dispos­able income.”

He added: “Despite tax rates coming down, increased concessions revenue is on the rise.

“With the FRCS on the verge of intro­ducing a world class IT system and we expect another revenue leap to happen in the next two to three years.”

FRCS director of revenue manage­ment Fazrul Rahman said: “It took us as a nation about 35 years to reach our first billion dollar of revenue, and then it took us about 10 years to reach the second billion.

“The pace at which the organisation is heading in terms of policy reform, it will take less than 10 years to reach the next billion.”

Social Democratic Liberal Party (SO­DELPA) Member of Parliament (MP) Aseri Radrodro raised the question on the eligibility of sectors that are given tax concessions.

Mr Radrodro further raised the rea­sons how FRCS address and improve tax revenue lost during concessions.

Mr Das responded saying concessions are given to the sector that really need it and see if the business is sustainable.

“The duty concession is targeted with respect to the industry that we want to promote,” Mr Das added.

“The revenue foregone is like an in­vestment from the government in es­tablishing that industry.”

Feedback: karalaini.tavi@fijisun.com.fj

 

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