More Corporate Tax

Corporates will pay Government $73.5 million in tax annually after a five per cent increase was proposed in Parliament.

Minister for Finance, Biman Prasad, delivered the 2023-2024 National Budget on Friday, and affirmed improvements in Fiji’s fiscal situation.

“They need to contribute more,” he said.

Corporate tax will increase from 20 to 25 per cent and new companies on the South Pacific Stock Exchange will increase from 10 to 15 per cent for seven years.

“We are encouraged by the feedback we have had from the business sector,” he said.

“They (business) want theGovernment to improve the regulatory environment and business processes.”

Departure Tax 

• Government will increase departure tax from $100 to $125, effective on August 1.
• It will further increase to $140 from January 1, 2024.
• It will add $30 million towards overall tax revenues. The tax increase from next year is to allow the tourism sector to plan for wholesaling and other commercial arrangements, said Mr Prasad.
• Government will increase excise tax on alcohol and tobacco by five per cent.
• Carbonated or sugar-sweetened beverages will increase from 35 cents per litre to 40 cents per litre.
• Motor vehicle import excise duty will increase on new and used passenger vehicle by five per cent.
• A domestic excise of 40 cents per kilogram or per litre and import excise of 15 per cent will be introduced on juice, ice cream, sweet biscuits, snacks, and sugar confectionery.

The social responsibility tax will be merged with the Pay as you earn (PAYE) structure.

It will have a five-percentage points reduction on each band, for those earning above $270,000, effective January 1, 2023.

Government will collect close to $30 million from the removal of some customs concessions, which include reduced duty of 10 cents per litre of fuel for hotels, manufacturers, cruise vessels and mining companies.

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