THE Fiji Revenue and Custom Authority has collected $1.74billion, exceeding the 2012 Budget forecast by $6million.
At the announcement in Suva yesterday, FRCA CEO Jitoko Tikolevu said the collection accounted for 88.5 per cent of last year's total, signifying the continuous reliance on tax revenue.
And the revenue target of $1.852b will be a challenge for them.
"Our revenue growth was 0.4 per cent, which was higher than that of the last decade average of 8.5 per cent," Mr Tikolevu said.
He said the growth was achieved despite the massive tax cuts, which had resulted in a direct loss of revenue of about $100m.
"It therefore reflects the success of the 2012 tax policy reforms and FRCA's efforts of recouping revenue losses through better revenue administration as well as the imposition of new efficient and equitable taxes."
He said the total value of tax concessions approved by FRCA last year was $633m against the $354m approved in 2011.
He said VAT remained the dominant source of tax revenue and it had accounted for 39 per cent of the total tax in the last year.
"This pattern of relying on VAT is not new, as similar revenue mixes were noticed 10 years ago.
"In absolute term, however, VAT revenue in 2012 is significantly higher than that of 2003 by 82.8 per cent."
He said VAT collections last year were higher than that of the previous years by $51.8m. And a massive $42.1m income tax refunds was also made last year.