Finance Minister Esrom Immanuel says the government is concerned by what he describes as continued delaying tactics by the Fiji Hotel and Tourism Association and some tourism operators over the five percent Tourism Services Tax.

Immanuel says the government has engaged with the FHTA and key tourism industry stakeholders since June to discuss the introduction and implementation of the tax.

He says the government has also given the industry additional time to prepare, with the implementation date moved from July 1 to August 1, and later to September 1.

The Minister says the extensions were provided in good faith to allow businesses to prepare their systems, communicate with customers and ensure compliance.

However, he says some industry players, with the support of the FHTA, continue to generate negative publicity around the TST.

Immanuel says the government believes these actions risk undermining a measure that is in the broader interest of Fiji’s tourism industry and the national economy.

He says the five percent Tourism Services Tax was introduced as part of the government’s broader efforts to support Fiji Airways, which he says is critical to the survival and growth of the tourism industry.

The Minister says tourism contributes about 40 percent of economic activity, generates nearly three billion dollars in foreign exchange earnings and supports thousands of jobs, businesses and livelihoods across Fiji.

He says the government has also considered the industry’s concerns by focusing the tax on larger tourism operators.

Immanuel says the current five percent tax is significantly lower than the previous combined 16 percent turnover-based ECAL and STT.

He says the government has given the industry sufficient time to prepare and now expects the sector to work constructively towards implementation.

Immanuel says the government remains willing to address practical issues and provide clarification, but will not continue to entertain efforts to delay or undermine the measure.