Praneeta Prakash 
[Photo: File]
The Fiji Hotel and Tourism Association welcomes the government’s confirmation that the Tourism Services Tax will now apply only to bookings made on or after 1 September exempting existing bookings from the tax.
FHTA chief executive officer Fantasha Lockington says this is they have been asking for since consultations began after the announcement of the tax.
She says this removes the risk that visitors who booked and paid for a Fiji holiday months ago would face an unexpected charge on arrival.
“This is a genuinely welcome result, and the right one. t restores fairness for visitors who planned their holiday in good faith, and it removes a real source of confusion and the higher risk of booking cancellations for the industry. We also acknowledge Government’s advised commitment to listening to industry and working collaboratively on policies that support sustainable economic growth.”
Lockington says FHTA is awaiting the updated Standard Interpretation Guidelines and further guidance from the Fiji Revenue and Customs Service, which will be issued ahead of 1 September.
She says that guidance will ensure clarity is provided for the scope and application of the new tax rules correctly.
“While not complete in terms of the clarity around the application, we are absolutely delighted with the outcome. Members still need clear, practical answers before 1 September and we will continue working with FRCS to get that guidance despite the ever-shortening time left to load systems that will support correct implementation.”
The 5% TST is applicable from 1st of next month to a specific list of tourism businesses with turnovers of $2million and above, for specific tourism services, for a period of 12 months.
