$1.16b in exports
12 February, 2016, 12:00 am
FIJI is expecting the highest export of $1.16billion after deduction for 2015.
This was told to Parliament by Attorney-General Aiyaz Sayed-Khaiyum following a question by Opposition member Ratu Suliano Matanitobua on Government’s 2011 export income deduction (EID) incentive.
“Overall in these periods, total domestic exports have grown by 15.4 per cent with the highest export loaded in 2015 which we expect after deduction will be done, amounting to $1.16b,” Mr Sayed-Khaiyum said.
He said the more exports a country had, the more the foreign reserves grew because it got foreign reserves for the value of the goods sent out.
“Export income deduction incentive is a very important incentive to encourage exporters from Fiji to send their goods abroad.”
He said the incentive started back in 2001 to spur the growth of exports.
Mr Sayed-Khaiyum said in 2001, the number of companies that received the incentive was 142.
“The rate of incentive at that time was 50 per cent, the export income deducted was $22.79million, the total export income was $45m from those companies but the total domestic export in 2011 was $1.02b.
“You will see a trend Madam Speaker that in 2012, the number of companies that received incentive was 162 as opposed to 142 the previous year.
“However, the percentage of the incentive was decreased to 50 to 40 per cent.
“Export income deducted in 2012 was $34.5m; total export income was $86.4m. A total domestic export in 2012 was $1.09b.”
He said in 2013, the number of companies that received the incentive was 181 as opposed to 162 the previous year.
“The EID rate was 40 per cent, export income deducted was $30m, the total export income was $76.6m and the total domestic export was $1.04b.
“In 2014, the number of companies that applied for EID was 184, EID rate was 40 per cent, export income deducted was $54m, the total export income was $134m, and the total value of the domestic exports grew to $1.1b.”
Mr Sayed-Khaiyum said exports helped Fiji’s balance of payment.