2023-2024 Fiji National Budget Highlights

Welcomed measures for Fiji's economy

By Atnesh Prasad, Tax Director


The main highlights which are relevant to investors and taxpayers alike are as follows;

  1. Corporate Income Tax rates will increase from current 20% to 25%. This will be effective from tax year 2023.
  2. South Pacific Stock Exchange (SPSE) – New companies eligible for reduced corporate tax for listing SPSE will have the tax rate increased from the current 10% to 15%. This will be effective from tax year 2023.
  3. Social Responsibility Tax (SRT) structure will be simplified by merging with the PAYE structure, along with a 5% reduction on each band, for those earning above $270,000, effective from 1st January, 2024.
  4. Fiji National Provident Funds (FNPF) contribution rate will be re-instated to 18% effective from January, 2024.
  5. Capital Gain Tax (CGT) on Sale of Shares – The CGT exemption on gains made on the disposal of shares if the shares were held by the person before 1 May 2011 will be repealed.
  6. Capital Gain Tax (CGT) on First Residential property – The CGT exemption on a gain made on the disposal of the first residential property which is limited to sole ownership or co-ownership with his or her spouse including a spouse living in a de-facto relationship, will be extended to include ownership with siblings, parents, children, grandchildren, and grandparents.
  7. Value Added Tax (VAT) – current three vat rates will be replaced with a simplified two rates, that is, 15%- and zero-rated vat. The 21 items on zero rated will increase to 22 items with the inclusion of prescribed medicines.  
  8. Value Added Tax (VAT) Monitoring system – The planned further implementation of the VAT Monitoring System will be paused whilst the entire system is reviewed.
  9. Tax Deduction for Companies Sponsoring Tertiary Education – The 100% tax deduction available to companies on the amount of tuition and living expenses paid for student(s) for higher education institution will be removed.
  10. Income Tax Exemption for Water Extraction & Bottling Business – The income of entities involved in the extraction and bottling of water will be exempt from Income Tax for 7 years. This will be applicable to existing and new businesses.
  11. Objections & Appeal Provisions – The Customs Act will be amended to allow Fiji Revenue & Customs Service (FRCS) to recover disputed duty despite the matter being in court.
  12. Warehouse Incentive Packaged will be repealed. This policy will be effective from 1st July, 2023 and any application received before 1st July, 2023 will be accepted.
  13. Import Excise Duty will be levied on New and Used Motor Vehicles at the rate of 5%.
  14. Airport Departure Tax will increase in two stages, that is, from $100 to $125 and later to $140. This will be effective from 1st August, 2023 and 1st January, 2024 respectively.
  15. Banks have now launched a new product that provides credit for agreement-to lease properties and associated costs of surveying, registration and conveyancing fees. This will be an added boost to the formalisation of housing in informal settlements.

The following are key areas of future Government Expenditure; 

  1. As per the 2023-2024 National Budget, expenditure stands at $4.3 billion and revenue projected at $3.7 billion. The deficit is 4.8% of Gross Domestic Product (GDP).
  2. Education sector gets highest allocation of $845 million.
  3. Free educational and transport assistance will be provided to primary and secondary school students with a total funding allocation of more than $100 million.
  4. $453.8 million has been allocated to Ministry of Health & medical Services.
  5. Fiji Roads Authority has been allocated $387.6 million from which $100 million is for road maintenance.
  6. Ministry of Agricultural & Waterways has been allocated $95.2 million. An increase of $37.3 million from prior year.
  7. $250.8 million has been allocated to Water Authority of Fiji (WAF) for improvement of water sources and implement resilient infrastructure.
  8. Trade, Co-operatives & Small Medium Enterprises and Communications has been allocated $116.5 million to strengthen Fiji’s position as the economic and international trade hub of the Pacific.
  9. Effective 1 August 2023, the Tertiary Scholarships and Loans Service (TSLS) will be replaced with the Fijian Scholarship Scheme and all outstanding Tertiary Education and Loan Scheme (TELS) debt will be forgiven amounting to $650 million.
  10. Grant of $148.3 million has been put in place for new Fijian Scholarship to sponsor 10,920 new students (inclusive of study grants), and fund 9,148 existing students.




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