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Fiji Time: 6:31 PM on Thursday 24 April

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Support for import substitution industries

Ropate Valemei
Wednesday, November 14, 2012

INDUSTRIES and sectors that assist with import substitution, boost foreign reserves, have high employment numbers and show potential for growth should be strongly encouraged.

This was highlighted in a submission from the Fiji Institute of Accountants to the Ministry of Finance 2013 budget submission.

FIA president Camacakau Raimuria said sectors and initiatives for consideration included the agriculture sector, export sector, hotel industry, fishing, garment industry and ICT industry.

He said the agriculture sector should get tax incentives and other support.

"Alternatively, current provisions should be amended to allow for tax incentives on a pro-rata basis where turnover exceeded $300,000, and should be available to all kinds of agricultural activities," Mr Raimuria said.

Currently, he said tax incentives for small and medium enterprises (SMEs) were available only if total turnover was about $300,000 per annum and was available for selected prescribed activities in agriculture, fisheries and tourism sectors only. He said the encouragement of export industries that contributed to foreign reserves was important to an economy like Fiji.