An increase in water revenue tax from 18 cents per litre to 19.5 cents per litre in the 2023/2024 National Budget means bottling companies will pay more in taxes to the Fiji Revenue and Customs Service (FRCS).
Prime Minister Sitiveni Rabuka highlighted this in response to critics of the seven-year tax holiday given to water bottling companies.
He said in a statement contrary to claims, Fiji Water was not exempted from paying taxes in Fiji under the 2023/2024 budget revenue measures.
He said the seven-year concession on corporate tax for the bottled water industry was also aimed at encouraging new players who wished to enter the industry (Tailevu, Ra, Ba) and existing operators who wish to expand operations.
He also clarified that tax arrangements for the water bottling industry that were announced in the budget was a commitment made in The People’s Alliance (PA) manifesto.
The party, he said, had also stated its intention to undertake a reform of the present taxation system, ensuring compliance using the existing and new information technology systems.
“I take a keen interest and keep tabs on the water industry since I opened the bottling plant in Yaqara in 1996 during my first term as Prime Minister,” he said.
“I have always been interested in their success as they bring great benefits to Fiji, and continue to do for the communities of Ra, the workers, and the country as a whole.
“In addition, a number of investors came to my office expressing their interest in entering the bottled water industry in Fiji – including in Tailevu, Ra and Ba.
“In their discussions with officials at the Prime Minister’s Office, these investors stated that Fiji needed a transparent, fair and equitable tax regime rather than one that penalised some and favoured other investors.”
He again reiterated that his meeting with Stewart and Lynda Resnick in the United States earlier this year had not influenced the inclusion of these tax measures.
“I had the opportunity to meet the owners of FIJI Water and other investors on my return from the Oceans Summit in Panama earlier this year.
“I always take the opportunity to meet foreign investors and Fiji citizens who are interested in investing in Fiji.”
