Government is looking to increase departure tax in 2025 and the current recommendation is that it be increased to $170 from $140, effective from April 2025.
Deputy Prime Minister and Minister for Finance, Professor Biman Prasad revealed this during the annual Fiji Institute of Accountants congress in Sigatoka in the weekend.
He said this is on the basis that the increments go towards funding necessary tourism infrastructure, particularly in rural areas.
Prof Prasad said the Government is also looking at reverting to the zero-tax rate on import duty from the current three percent charged as this has had a negative response.
“Some people may criticise us for being too open about our policies – After all, if we suggest a distribution tax, will there be a rush of distribution before the Budget day? But I would prefer that we signaled to the business and investing community our intention to be open and transparent, even at the sacrifice of a few dollars.”
He maintained that maintaining VAT at 15 percent will earn the Government additional revenue and that this is the price that all Fijians must face for the many years of poor fiscal management.
Prof Prasad said that when the Government is not properly funded, it is the poorest people who suffer the most and when health, education, and welfare systems are weakened by neglect; it is the poor who pay the greatest price.
“We must restore these to acceptable levels. We have to find the resources to restore and rebuild our social and physical infrastructure,” Prof Prasad added.
