Changes in Taxes and Duties

To fight Non-Communicable Diseases, Excise Duty on tobacco and alcohol will be increased by 10 percent while there will a 5 cents per litre excise duty imposed on sweetened drinks.

Prices of items like perfume, cosmetics, pre-shave, shaving gear, after shave, cameras, camcorders, sunglasses, binoculars, video and electronic games, watches, ipods, MP3 and MP4 players and jewelry will go up.

Duty for all items will increase from 0% to 32%.

A new import duty of 32% will be introduced on photocopy paper.

To protect the local industry, Import Duty will now be charged on imported exercise books.

This will be a specific rate of $1 or 32% whichever is greater.

Duty will be increased on blank CD’s and DVD’s from $2 to $5.

The Service Turnover Tax is also extended in the 2015 National Budget.

The Service Tax will be charged on the provision of meals, beverages or any other services in all licensed bars including bars located in clubs.

The tax will also be extended to include service provided by hired vehicles.

The scope of the Service Turnover Tax will also be extended to include takeaway meals in restaurants with a gross turnover of $1.5 million dollars.

It has also been confirmed that the VAT Decree will be amended to zero-rate repeats of prescribed medicine.

The value of Fringe Benefit Tax from motor vehicle is reduced by 50% and the remaining 50% will be charged the tax.

The Fringe Benefit Tax will also be extended to include all accommodation provided to hotel executive managers, irrespective of the location of the hotel.

There is also good news for workers as FNPF Employer contributions will increase from 8% to 10% from January next year.

This means an increase in employees’ retirement savings.

A major initiative has been announced in relation to land to ensure that non Fiji residents can only lease i-Taukei land for residential purposes or only purchase strata title properties.

A strata title is a form of ownership devised for multi-level apartment blocks.

Non-residents will no longer be able to buy freehold land or leasing state land for residential purposes.

Instead they can only lease i-Taukei land which will increase the value of i-Taukei land which will benefit the i-Taukei landowners.

The minimum agricultural capital investment required to qualify for a 10 year tax free holiday is reduced from $2 million to $250,000.

There is also an amnesty of 6 months for those who cannot pay their tax liability.

They need to come back to FRCA with a payment program within 6 months. This applies to those individuals and companies who have accepted their tax liability and are willing to pay.

A 6 months amnesty has also been granted to people to make accurate declarations of assets outside Fiji.