ADB projects growth for Fiji
December 4, 2015 12:42 am
The Asian Development Bank in its latest Pacific Economic Monitors says revenue in Fiji is projected to increase modestly, through new duties and excise taxes.
These include duties and taxes on tobacco, alcohol and soft drinks, additional levies on hotel room rates and anticipated movements in tax compliance.
The report says a reduction in the value added tax (VAT) from 15% to 9% is expected to offset by the removal of exemptions for food, kerosene and medicine.
It says capital investments, primarily for continuing works on roads; water and sanitation infrastructure is projected to remain at around 40% of the budget.
The monitor says downside risks to the economy remain from slowing growth in China – leading to weaker trade in Asia and the Pacific.
The report says to sustain growth, the Fijian government needs to continue its structural reform program, as highlighted by the International Monetary Fund.