Praneeta Prakash 
[Photo: FILE]
There is an ongoing discussion between the Ministry of Tourism and Finance Ministry to stagger increases in departure tax, in a move aimed at reducing the immediate impact on travelers and the tourism industry.
Director Tourism, Jacinta Lal, highlighted this while responding to a question by Standing Committee on Foreign Affairs and Defence member, Rinesh Sharma, who raised concerns about the steady rise in departure tax in recent years.
Lal says the issue was also brought up Fiji Tourism Convention, where government officials and private sector representatives discussed the possibility of reviewing or repurposing the departure tax.
“So this discussion has been very strong. So one of the least negotiations we had with the Ministry of finance was at least to stagger the increase that has come. CAFF again is one of the biggest beneficiaries of the departure tax.”
Lal says managing the pace of tax increases has been a key point of negotiation with the Ministry of Finance.
So these discussions we do hope to continue with the Ministry of Finance as we go forward to make sure the tax is flexible enough whilst not impacting the overall fiscal space that the Fiji economy is in.
The Ministry is expected to continue consultations with the Ministry of Finance and industry partners as it evaluates potential adjustments to the current tax framework.
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