Fiji is actively intensifying its efforts to address tax evasion and unreported economic activities within the country. Led by Acting Prime Minister and Finance Minister, Professor Biman Prasad, the government has adopted a comprehensive strategy aimed at both educating and enforcing tax compliance among business operators, particularly small and informal ones.
Recent budget measures have strengthened the country’s oversight of financial activities. Notable changes include lowering the threshold for the VAT Monitoring System and requiring businesses to declare their assets. These adjustments are designed to eliminate existing loopholes and encourage broader compliance, thereby limiting opportunities for illicit earnings, including those from the drug trade.
This initiative builds on past efforts, such as the creation of a dedicated Tax Compliance Task Force, which has been instrumental in enforcing tax laws and addressing the challenges of the underground economy. The government’s collaborative ventures with international bodies like the Australian Tax Office showcase their commitment to implementing global best practices in taxation.
Fiji’s proactive measures underscore its dedication to reducing revenue leakage and promoting economic transparency. By tightening tax regulations and targeting the shadow economy, the government not only aims to strengthen the country’s financial health but also seeks to enhance public services and foster sustainable national growth. These efforts are poised to create a fairer business environment and a more prosperous future for all Fijians.