FRCS collects record $3.51 billion in annual revenue

The Fiji Revenue and Customs Service (FRCS) has recorded its highest annual revenue collection on record, collecting $3.51 billion in the 2025-2026 financial year despite global economic uncertainty and softer tourism expectations.

The collection exceeded the Government's annual revenue forecast of $3.374 billion by $136.2 million, or 4 per cent, and surpassed the previous financial year's record by $25.8 million.

FRCS chief executive Udit Singh said the result reflected the resilience of Fiji's economy.

"This record result reflects the strength of Fiji's underlying business and employment base. Businesses continued to operate and contribute, employers maintained jobs and wages, trade remained active, and taxpayers continued to support the country despite a challenging economic environment," Mr Singh said.

Growth was driven by Net Income Tax, which increased by $53.7 million, Net Customs collections, up $46.6 million, and Departure Tax, which rose by $43.7 million.

Within those categories, Pay As You Earn (PAYE) collections increased by $37.9 million, while Company Income Tax rose by $28.3 million, reflecting continued resilience in employment, wages and business profitability.

Fiscal Duty, Domestic Excise Duty, Withholding Tax and Import Excise Duty also recorded annual growth.

Net Value Added Tax (VAT) collections declined by $102.8 million compared with the previous financial year, largely because of the reduction in the VAT rate from 15 per cent to 12.5 per cent, together with refund and payment timing effects.

FRCS said the decline should not be interpreted as a similar fall in economic activity.

Revenue collected in July 2026 totalled $288.8 million, which was $16.6 million below forecast and $22.3 million lower than July 2025, mainly because of the timing of Company Income Tax payments and higher refunds.

Despite the softer July result, FRCS finished the financial year well above its annual target.

Mr Singh said the outcome aligned with the Reserve Bank of Fiji's assessment that the economy continued to grow, although at a slower pace and amid global risks.

"We should view this achievement with confidence but not complacency. The economic risks remain real, but the breadth of the revenue result shows that Fiji enters the new financial year with a resilient economic and fiscal foundation."

Mr Singh thanked taxpayers, businesses, employers, importers, exporters, customs brokers and tax agents for their contribution.

"This achievement belongs first and foremost to Fiji's taxpayers. Every dollar collected supports essential public services, including healthcare, education, infrastructure, social assistance, and border protection."

He also acknowledged the FRCS Board, staff, the Government, the Ministry of Finance, the Reserve Bank of Fiji and partner agencies for their support.