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Fiji Time: 11:29 AM on Wednesday 17 September

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$1.73b revenue

Ropate Valemei
Saturday, February 02, 2013

THE Fiji Revenue and Customs Authority (FRCA) recorded $1.735billion in total revenue last year.

FRCA chief executive officer Jitoko Tikolevu said revenue collected exceeded the original revenue forecast of $1.729b by $6.4million, and was below the forecast of $1.742b by $6.8m.

Mr Tikolevu said last year's revenue collection exceeded the 2011 figure by $149m.

"The original 2012 revenue forecast of $1.729b was increased to $1.742b during the 2013 Budget process," he said yesterday.

"The 2012 revenue grew by 9.4 per cent over the 2011 revenue collection. For income tax, $448.3m was collected and this was below the revised forecast of $457m and the $453.7m of the 2012 original forecast.

"A total of $676.4m was collected by FRCA and exceeded the 2012 revised forecast of $672.5m and also the 2012 original forecast of $669.2m."

Over $15m was collected for capital gain tax which was higher than the revised forecast of $8.3m and also exceeded the original forecast of $5.1m.

For the service turnover tax, $48.6m was collected which was below the revised and original forecast. Mr Tikolevu said the positive revenue collection was attributed to sound tax policies, improved tax compliance as well as multiplier effect through tax cuts.

"The record collection is a result of FRCA's continuous efforts to ensure proper taxes are being collected, new revenue policies implemented in 2012, and the commitment by taxpayers in meeting their tax obligation on time," he said.

"Value Added Tax (VAT) continued to be the dominant source of the overall tax revenue by accounting for about 39 per cent."

He said income tax and customs accounted for 26 per cent and 21 per cent respectively, while the other taxes accounted for 14 per cent of the total tax revenue.

"When compared to the last three years, it is observed that the proportion of VAT revenue to total tax revenue is increasing while the opposite trend is noticed for income tax and customs."

He said this was mainly because of a reduction in tax rate and increased concession.