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News

Over $114m to be collected from STT

March 17, 2018 12:20 am

The government will collect $114.8m from Service Turnover Tax (STT) and $94.3m from the Environmental and Climate Adaptation levy (ECAL) in the 2017/2018 financial year.

Economy Minister, Aiyaz Sayed-Khaiyum, says the contribution to GDP from STT will be one percent while for ECAL it will be 0.9%.

The six percent Service Turnover Tax and the ten percent Environmental and Climate Adaptation levy are targeted at high end spending areas.

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“I would like to highlight that by law the ECAL and STT goes to actually a particular fund. And particularly for ECAL and the funds from the plastic bags and those funds and those funds need to be specifically used for environmental and climate adaptation measures.”

The STT is levied on the VAT exclusive cost of turnover of any person conducting a business involving the provision of a prescribed service.

Whereas the ECAL is aligned to Fiji’s COP 23 Environment Protection Initiatives which reinforces Government’s commitment for all Fijians the right to a clean environment.

These prescribed services include Bistros and coffee shops – turnover $1.25 million and more, licensed hotels, bars, nightclubs, cinema operators and water sports operators to name a few.

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