[Photo: FILE]

The Fiji Revenue and Customs Service is owed $495.4 million in tax arrears, with the figure raising concerns over the recovery of outstanding revenue.

Finance Minister Esrom Immanuel states the amount includes disputed debts, taxpayers on repayment arrangements and debts owed by insolvent taxpayers.

Immanuel said FRCS was taking a risk-based approach to debt collection, including early intervention, repayment arrangements, refund offsets and stronger enforcement.

He pointed out that FRCS collected a record $3.5 billion last year, exceeding its forecast despite the fuel crisis, with collections continuing to grow in 2026.

But the strong revenue performance is being weighed against concerns over refunds, write-offs and the concentration of revenue among a small number of taxpayers.

“The tax amnesty resulted in about 40,000 returns being lodged, with around $75 million in payments and declared liabilities.”

Standing Committee on Economic Affairs Chairperson Sakiusa Tubuna explained that outstanding tax refund liabilities have reached about $639.9 million.

Tubuna said the committee was also concerned about $184.6 million in penalties waived or written off and the concentration of revenue among major taxpayers.

He adds that Parliament needs clearer outcome-based reporting on tax crime investigations, border enforcement, compliance and customer service to properly assess whether FRCS is delivering value.

Opposition MP Semi Koroilavesau pointed out that delayed VAT refunds are putting pressure on small businesses that depend on cash flow to keep operating.

He says 58 Gold Card taxpayers account for 57 per cent of income generated by FRCS, creating a concentration risk for government revenue.

Opposition MP Premilla Kumar has also questioned the transparency of penalty write-offs, saying they increased by 68.5 percent from the previous year.

Kumar says about $24.8 million in cash was recovered over three months, compared with $92.1 million in waivers.

She says the process must be transparent and fair to taxpayers who meet their obligations.

Kumar also called for repayment arrangements on COVID-19 business loans to reflect individual businesses’ cash-flow positions.

Meanwhile, Professor Biman Prasad says improved revenue forecasting and tax reforms have strengthened compliance.

He says the latest tax amnesty brought about 40,000 outstanding taxpayers into the tax net.

FRCS recorded $3.485 billion in net government revenue in 2024–2025, exceeding its forecast by $185.6 million, or 5.6 percent.