President, family tax exempted
20 January, 2020, 11:29 am
THE President or his family are exempted from paying value added tax (VAT) on imports, states the draft Value Added Tax Bill 2020.
The Fiji Revenue and Customs Service will begin holding public consultations on the draft legislature from this week.
Under schedule 3, the draft Bill has a list of areas, entities and individuals who have VAT exemption on imports.
Under code 201A “the President and his or her family” are listed.
Other notable VAT exemption on imports is for goods imported for disabled persons, artificial parts of the body and corrective spectacles.
Wedding apparel imported by foreign couples or brought into the country by other persons for the brides and grooms that will be worn by wedding couples to get marred in Fiji are also VAT exempted.
Hybrid and electric charging vessels imports also won’t be subject to VAT, states the draft Bill.
All diplomatic missions and an international organisation to which the provision of Section 2 of the Diplomatic Privileges and Immunities Act 1971 apply are also VAT exempted.
The draft Bill proposes charitable and religious organisations and the owner, temporary owner, or trustees of goods of a deceased Fiji resident also be VAT exempted on any imports.
A hospital or medical institution will also be exempted from paying VAT on imports.
VAT is the largest source of revenue for government.
In 2019 $805.5 million was collected.