The Revenue and Customs Service (FRCS) has surpassed its first quarter fiscal year revenue target by collecting total net revenue of $742.1 million for the quarter ended 31 October 2023.
This exceeds the forecast by $9.3 million, equivalent to 1.3 percent and represents a significant 28.6 per cent ($164.9 million) growth over the same period last year.
The favorable outcome can be attributed to the exceptional performance in October, where a net revenue of $269.0 million was achieved, exceeding the monthly forecast by a remarkable $26.0 million, representing a 10.7 per cent positive variance.
The overall revenue collections for the 2023-2024 financial year are projected at $3.1 billion, an increase of $855.4 million compared to the 2022-2023 fiscal year.
FRCS Acting Chief Executive, Malakai Naiyaga, credited the favorable cumulative collection to the performance of key tax categories such as Value Added Tax (VAT), which contributed $332.1 or 44.8 per cent towards the total collections, Income taxes contributed $216.1m or 29.1 per cent, Trade Taxes contributed $132.6m or 17.9 per cent and other taxes and levies contributed $61.2m or 8.2 per cent of the tax mix.
“The positive collections are indicative of a broad-based economic recovery across all sectors leading to increased revenue.”
“This recovery signifies higher profits for businesses, increased individual income, and a surge in consumer spending.”
He said notably, the improvements observed in these collections indicate a notable economic upturn compared to the previous year.
“This resurgence is attributed to several key factors, including the services sector benefiting from increased tourism, enhanced income tax payments due to improved turnover and profits by companies, and an upsurge in VAT collections driven by pent-up consumer demand.”
“These collective elements have played a crucial role in driving the economic upswing, reflecting a positive revenue collection trend across various sectors,” he said.
Naiyaga added that the strong revenue performance has provided a solid foundation for the remainder of 2023-2024 fiscal year, now at 23.9 per cent of the $3.1b annual target.
“FRCS is committed to partnering with stakeholders and taxpayers to foster a culture of tax compliance.”
“We are assisting taxpayers with filing and paying taxes and our team is also conducting awareness campaigns and stakeholder forums aligned with the 2023-2024 National Budget goals,” he said.