Government has announced a temporary suspension of outstanding film rebate payments and has made an arrangement with Film Fiji for a five-year payment period to settle the outstanding film rebate payments.
In Parliament, the Deputy Prime Minister and Minister for Finance Prof Biman Prasad said the previous Government had paid out subsides of $235.5 million over a short span of time, while at the same time has an outstanding balance of over $180 million to be paid out.
Prof Prasad said this is over $400 million.
“Nonetheless, for the outstanding rebate payment, Government has a legal obligation to settle these dues. As such for each financial year from 2021 to 2022, $40 million has been allocated to settle that outstanding film rebates according to the production payment plan or schedule developed by Film Fiji in consultation with the Ministry of Finance, this has to be paid.”
The Deputy Prime Minister indicated that in the last financial year $68.7 million was approved and paid out to production houses and for the current financial year $30 million- a total rebate paid of $68.7 million.
Prof Prasad said that it is crucial that a comprehensive review is undertaken and that the Ministry of Trade is doing that to ascertain the effectiveness of the film tax rebate.
“When you make this kind of incentives, when you make this kind of policies, where taxpayers funds are directly involved, this is like taking out tax dollar and giving out as a subsidy, Government has to be clear and thorough with the cost benefit analysis, looking at the multiplier effect, how is it going to be effective and without doing that, your pay this kind of taxpayers’ funds, hard-earned dollar,” he added.
