4 July, 2017, 12:00 am
DESPITE the decrease in the Service Turnover Tax the Government expects collections to increase to $98.1 million in the 2016/2017 financial year and further increase to $114.8m in FY 2017/2018.
In the 2017/2018 National Budget, Attorney-General and Minister for Economy Aiyaz Sayed-Khaiyum announced the reduction in STT from 10 per cent to 6 per cent.
As per the 2017/2018 Budget Supplement STT collections for the FY 2015-2016 stood at $91.3m.
In addition to that, Government has projected its Water Resource Tax to increase to $69.9m for the FY 2017/2018.
Collections from Water Resource Tax stood at $41.7m in 2015-2016 with projections for the collections to rise to $59.7m in 2016/2017.
Meanwhile, the continuous growth in visitors to Fiji is expected to boost departure tax collections throughout 2017 and 2018.
As per the 2017/2018 Budget Supplement actual collections for departure taxes accumulated to $138.1m in 2015-2016 while receipts for the FY 2016-2017 are expected to amount to $147.2m with collections of $172.2m forecast for the FY 2017/2018.
Collections from stamp duties are projected to increase to $97.8m in 2017/2018 and Government believes this increase in collection of stamp duty is largely driven by increased activity in Fiji’s real estate sector.
For the FY 2016-2017, recipients are anticipated to grow to $84.2m, an increase of $10.1m or 13.6 per cent from the previous financial year.
The Environmental Levy has been renamed as the Environment and Climate Adaptation Levy (ECAL).
ECAL collections rose to $31.0m in FY 2015-2016 before ascending to $77.5m in the FY 2016-2017. Collections are forecast to rise to $94.3m in the FY 2017-2018.