Shania Shayal Prasad 
Employers are urging the government to re-examine how the Fiji National University levy is being allocated.
The levy, a mandatory one percent tax on an employer’s total gross emoluments, was originally introduced to support workforce training and development across the country.
However, changes made by the previous government have redirected a significant portion of the funds elsewhere, leaving just 10 percent to support employee training.
Fiji Commerce and Employers Federation has made a submission to the Parliamentary Standing Committee on Economic Affairs, calling for a review of how the levy is being utilized.
In 2022, $23 million was collected through the FNU levy, but only $2.3 million directed to training and FCEF Board Member Deepak Rathod says this is undermining efforts to upskill the workforce.
He says the proposed new distribution under the Work Care Bill maintains this split.
“Legal analysis indicates this approach raises constitutional concerns as levies function similar to taxation and should require parliamentary debate and approval. The key business impact for this is an unpredictable financial obligations.”
In response, Minister for Employment, Productivity and Industrial Relations Agni Deo Singh says they will now look into this matter.
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