Shania Shayal Prasad 
[Photo: FILE]
Government revenue outperformed expectations in the first quarter of the 2025–2026 financial year, despite the reduction in the Value Added Tax rate from 15 percent to 12.5 percent.
According to the Ministry of Finance’s Provisional First Quarter Fiscal Performance Report 2025-2026, total revenue stood at $1.12 billion, about seven percent above forecast and nearly three percent higher than the same period last year.
Tax revenue reached $884.2 million, supported by stronger-than-expected collections from corporate tax, departure tax, withholding taxes, and excise duties.
Non-tax revenue also increased sharply, rising by more than 16 percent compared to last year.
VAT collections were lower year-on-year due to the rate reduction, but still exceeded first-quarter forecasts, indicating resilient consumer spending.
The Ministry says the revenue performance reflects continued economic momentum and improved compliance across several tax categories.
Stream the best of Fiji on VITI+. Anytime. Anywhere.
