The Fiji Revenue and Customs Service (FRCS) is intensifying efforts to curb tax evasion and unreported economic activities in the country through a focused compliance drive. Acting Prime Minister and Finance Minister, Professor Biman Prasad, indicated that the government is employing a dual strategy to tackle this issue. The approach involves educating small and informal business operators to ensure they meet their tax obligations while simultaneously cracking down on entities that deliberately evade taxes.
Recent budget measures have been introduced to strengthen the oversight of business financial activities. Key changes include lowering the threshold for the VAT Monitoring System and mandating businesses to declare their assets. These steps are crafted to eliminate loopholes and encourage more entities to comply with taxation requirements, further constraining avenues for illicit earnings such as drug trade.
The ongoing initiatives align with previous efforts, including the establishment of a specialized Tax Compliance Task Force aimed at reinforcing tax laws and navigating the challenges posed by an underground economy. Collaboration with international agencies like the Australian Tax Office has been emphasized to ensure the measures are supported by global best practices.
These robust actions taken by the Fijian government reflect a strong commitment to mitigating revenue leakage, fostering economic transparency, and constructing a fairer business environment. By tightening tax regulations and addressing the shadow economy head-on, Fiji aims to bolster its financial infrastructure, allowing for improved public services and national growth. Such an initiative not only strengthens the internal economic fabric but also sets a positive trajectory for continued prosperity and development for all Fijian citizens.