Fiji has successfully been removed from the European Union’s tax blacklist after addressing concerns about tax transparency, fair taxation, and harmful tax practices. These issues traced back to a 2017 audit by the EU Code of Conduct. Udit Singh, the chief executive officer of the Fiji Revenue and Customs Service (FRCS), noted that Fiji had been given a 12-month deadline to implement essential reforms to comply with international tax standards, including the Base Erosion and Profit Shifting (BEPS) guidelines. However, the country was blacklisted in 2019 due to insufficient progress.
Singh explained that there was limited motivation to pursue these reforms at that time, which contributed to Fiji’s unfavorable status. The EU’s concerns primarily focused on how Fiji’s tax practices affected both local companies and those considering investments in the region.
In response, the FRCS, in collaboration with the Ministries of Finance and Trade, and other stakeholders, has worked hard over the past three to four years to implement significant legislative and policy reforms. The recent decision to remove Fiji from the EU blacklist is a testament to the success of these changes and the nation’s commitment to upholding international tax standards.
This positive development is anticipated to bolster investor confidence and create new opportunities for economic growth in Fiji as the country strives for a more transparent and equitable tax system. The government’s proactive measures to rectify previous deficiencies demonstrate a strong commitment to fostering an attractive environment for investment, paving the way for a more prosperous future.