Excise duty on tobacco and alcohol will increase by 10 percent.
To combat piracy and illegal sale of disks which includes CDs and DVDs, the duty on imported blank disks will increase from $1 to $2 and a new excise duty of $1 per disk will be levied on locally produced disks.
Good news for companies listed on the South Pacific Stock Exchange as their corporate tax rate will be further reduced to 10 percent, from the current 18.5 percent.
Furthermore, any trading of shares on the South Pacific Stock Exchange will be exempt from any income and capital gains tax.
The corporate tax rate of 17 percent for a company that moves its regional or global headquarters to Fiji will remain in effect next year.
A new apprenticeship program will start next year.
Under this program, any employer who employs an apprentice while he or she is studying will receive a 150 percent tax deduction for salaries paid to that apprentice.
The business licensing and other fees are currently being assessed where small businesses will pay a lower amount of fees.
Commodore Bainimarama said the government will also conduct a similar exercise with hotel and liquor licensing fees so that smaller hotels will pay less.
All current zero-rated duties and import incentives will continue next year.
In order to further stimulate economic development, the Tavua to Korovou region will be declared a tax free zone for other commercial activities and not just agriculture and dairy.
Airport Departure Tax will be increased from the current $150 to $200 from January 2014.
The Prime Minister said despite Government’s efforts to reduce the cost of certain commodities through duty reductions, the price of many these items have continued to escalate.
Commodore Bainimarama said to address this issue, the Ministries of Finance and Industry & Trade, together with FRCA will form a Taskforce in the next few weeks to undertake price monitoring and surveillance on key policy items that have been granted duty concession.
Returning residents who already enjoy duty free concession for normal household items, can now bring their vehicle to Fiji duty free, provided that vehicle is less than 5 years old or is Euro 4 compliant.
Commodore Bainimarama has announced that the existing fiscal duty of 32 percent on food supplements will be reduced to 0 percent, as food supplements include essential vitamins predominantly used by pregnant mothers and senior citizens.
Existing duty of 32 percent on baby feeding bottles will also be reduced to 0 percent.
Story by: Fijivillage team
