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Business images of Fiji

Economy of Fiji

Fiji stands out as a leader in the Pacific Island economies. Endowed with natural resources like forests, minerals, and fish, Fiji's strengths include a thriving tourism industry and a significant agricultural sector. Tourism is a major source of foreign exchange, while agriculture provides both subsistence farming for local communities and cash crops for export. Light manufacturing and mining contribute further to the diversification of Fiji's economy. With a population of approximately 905,949 and membership in the World Trade Organization, Fiji is a well-developed economy positioned for continued success.

Top Sectors in Fiji

Agriculture in Fiji

Fiji's economy boasts a robust agricultural sector, contributing 18% to the GDP. While the workforce participation in agriculture is high, the sector thrives. Sugarcane reigns supreme as the main crop, but other products like coconuts, ginger, cassava, and fruits like bananas and pineapples flourish as well. Livestock farming also contributes to the mix, with cattle, pigs, and goats raised for meat. Fishing plays a significant role, generating nearly 10% of export revenue in the early 21st century. Finally, Fiji's natural resources extend to lumber, with timber ranking as the third-largest export commodity.

Tourism in Fiji

Fiji's tourism industry is a shining star, leading the nation's economic activity. It contributes a substantial 24.4% to the GDP (data source needed). Visitor arrivals have skyrocketed, with over 960,000 tourists excluding cruise ship passengers in 2019, representing a significant increase from 1999. Tourists come from all corners of the globe, with Australia, New Zealand, Japan, the United States, and the United Kingdom being major source countries. The economic impact of tourism is undeniable, generating significant foreign exchange that surpasses earnings from Fiji's two largest goods exports.

Manufacturing in Fiji

Fiji's manufacturing sector is a diverse contributor to the economy. Sugarcane processing plays a leading role, alongside thriving garment manufacturing and mineral water bottling industries. Beyond these major players, boat building, cement production, brewing, and paint manufacturing add to the mix. Fiji's resource wealth extends to wood products, where it flourishes as a manufacturer and net exporter of pine chips, sawnwood, and wood-based panels.


Fiji - Key Economic Indicators

Exports and Imports

Fiji's exports mainly consist of sugar, garments, gold, fish, and timber, with sugar being the primary export commodity. In recent years, there has been a slight increase in exports, with a growth rate of approximately 2.5% annually. Imports largely comprise machinery and transport equipment, manufactured goods, food, and petroleum products. The import growth rate has been slightly higher at around 3%, reflecting increasing domestic demand for goods and machinery.

Infrastructure

Fiji has been investing in its infrastructure, particularly in roads, bridges, and ports, to support economic growth and development. Over the past five years, the government has allocated approximately 15% of its annual budget to infrastructure projects. This investment has led to improvements in transportation networks and connectivity, enhancing domestic and international trade.

Balance of Trade

Fiji's balance of trade has experienced fluctuations in recent years, largely influenced by global market conditions and domestic production capacity. While exports have shown moderate growth, imports have been increasing at a slightly higher rate, leading to a trade deficit. The trade deficit currently stands at around 8% of GDP, highlighting the need for policies to boost exports and reduce reliance on imports.

Fiscal Policy

The Fijian government has pursued expansionary fiscal policies to stimulate economic growth and development. Government spending has increased by an average of 6% annually over the past five years, with a focus on infrastructure development, education, and healthcare. To finance these expenditures, the government has relied on a combination of tax revenues and external borrowing, maintaining a fiscal deficit of approximately 3% of GDP.

Monetary Policy

The Reserve Bank of Fiji has implemented accommodative monetary policies to support economic activity and maintain price stability. Key actions include maintaining low interest rates to encourage borrowing and investment, as well as managing foreign exchange reserves to stabilize the currency. Inflation has remained relatively low, averaging around 2.5% annually, reflecting the effectiveness of monetary policy measures.

Trade Agreements

Fiji is a member of various regional and international trade agreements, including the Melanesian Spearhead Group Trade Agreement and the Pacific Agreement on Closer Economic Relations. Additionally, Fiji has preferential trade arrangements with Australia, New Zealand, and the European Union, which provide duty-free access for certain exports. These trade agreements have facilitated market access and promoted trade diversification for Fijian goods and services.

Environmental Regulations

Fiji has implemented stringent environmental regulations to safeguard its natural resources and promote sustainable development. The government has enacted laws to control pollution, protect biodiversity, and mitigate the impacts of climate change. Compliance with environmental standards is enforced through regulatory agencies, and businesses are required to adhere to strict guidelines to minimize their ecological footprint.

Tax System in Fiji

Capital Gains Tax: Fiji does not currently levy a specific capital gains tax on profits from investments. However, certain gains may be subject to taxation under the Income Tax Act if they are considered part of a taxpayer's assessable income. This includes gains derived from the sale of assets held for business purposes or gains realized from the disposal of investment properties. The taxation of capital gains in Fiji is primarily governed by general income tax provisions rather than a dedicated capital gains tax regime.
Corporate Tax Rate: The corporate tax rate in Fiji is 20%, applicable to the taxable income of resident and non-resident companies operating in the country. This rate is relatively competitive compared to other jurisdictions in the region and is designed to attract investment and promote business growth. Additionally, Fiji offers various incentives and concessions, such as tax holidays and reduced tax rates for specific industries or projects, to further encourage corporate investment and expansion.
Sales Tax: Fiji's sales tax system comprises the Value Added Tax (VAT), which is levied at a standard rate of 9%. VAT applies to the supply of goods and services made by VAT-registered businesses in Fiji, as well as on imports of taxable goods and services. Certain goods and services may be exempt from VAT, such as basic food items, healthcare services, and educational services. The VAT system aims to generate revenue for the government while maintaining a broad-based and equitable tax regime.
Property Tax: Property tax in Fiji is primarily imposed at the local government level and varies depending on the location and value of the property. The tax is levied on the unimproved capital value (UCV) or the improved capital value (ICV) of land and buildings. Property owners are required to declare the value of their properties to the relevant municipal or city councils, which then determine the tax liability based on prescribed rates. Property tax revenue contributes to funding local government services and infrastructure development.
Payroll Tax: Fiji does not have a standalone payroll tax. However, social security contributions are deducted from employees' wages and salaries to fund various social security programs, including pensions, disability benefits, and healthcare services. These contributions are made to the Fiji National Provident Fund (FNPF), which serves as the primary vehicle for retirement savings and social welfare in Fiji. The FNPF contributions are calculated based on a percentage of employees' earnings, with both employers and employees sharing the contribution burden.
Tax Deductions and Credits: Fiji's tax system provides for various deductions and credits aimed at reducing taxpayers' overall tax liability and promoting specific economic activities. These may include deductions for business expenses, investment incentives for certain industries or regions, and tax credits for research and development activities or environmental conservation initiatives. Taxpayers can take advantage of these deductions and credits to optimize their tax positions and minimize their tax burdens within the framework of the law.
Tax Compliance: The efficiency of tax collection and compliance in Fiji is supported by the Fiji Revenue and Customs Service (FRCS), which administers and enforces tax laws and regulations in the country. FRCS implements measures to enhance tax compliance, such as taxpayer education programs, taxpayer assistance services, and risk-based compliance strategies. Additionally, the adoption of electronic tax filing and payment systems has streamlined tax administration processes, improving the overall efficiency of tax collection and compliance efforts.
Tax Burden: The overall tax burden on individuals and businesses in Fiji is influenced by various factors, including the structure of the tax system, tax rates, and the level of economic activity. While Fiji maintains relatively moderate tax rates compared to some other countries, the tax burden may vary depending on individual circumstances and the extent of taxable income or profits. Efforts to balance the tax burden with the need for revenue generation and economic growth are ongoing, with periodic reviews and adjustments to tax policies and regulations.

86 Live Notices for Fiji ....

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Social Safeguards Specialist
country Fiji
posting date18 Jan 2025
deadline23 Jan 2025
Supply of Cargo truck with crane
country Fiji
posting date17 Jan 2025
deadline22 Jan 2025
Supply and Fit out of Containerised solutions
country Fiji
posting date17 Jan 2025
deadline15 Feb 2025
Provision of QUANTITY SURVEYING SERVICES FIJI AIRPORTS CAPITAL WORKS PROGRAM Readvertised:Secondment Role
country Fiji
posting date17 Jan 2025
deadline27 Jan 2025
Developing National Strategy And Implementation Plan For Data Security And Data
country Fiji
posting date17 Jan 2025
deadline03 Feb 2025
Developing National Strategy And Implementation Plan For Data Security And Data
country Fiji
posting date17 Jan 2025
deadline03 Feb 2025
Ta-10405 Fij: Critical Bridges Resilience Project - Ics-01 Social Safeguards Specialist (56215-001)
country Fiji
posting date17 Jan 2025
deadline23 Jan 2025
Provision of Professional Services for Hydraulic, Structural & Functional Assessment for Waima
country Fiji
posting date15 Jan 2025
deadline20 Feb 2025
Renovation & Upgrading Works for the Bure and Front Shed at Wailoku Depot
country Fiji
posting date15 Jan 2025
deadline12 Feb 2025
Provision of New Solar Security Lights for Wailoku Depot
country Fiji
posting date15 Jan 2025
deadline03 Feb 2025
Installation of Safety Signage Board for WTP'S and WWTP'S North Region
country Fiji
posting date15 Jan 2025
deadline31 Jan 2025
Provision of ELECTRICAL WORKS AT WAIMANU
country Fiji
posting date15 Jan 2025
deadline31 Jan 2025
Supply and Install bleeding Lines for Various Pump Stations
country Fiji
posting date15 Jan 2025
deadline31 Jan 2025
Provision of Brass Fitting
country Fiji
posting date15 Jan 2025
deadline24 Jan 2025
Supply of Furnitures for Sigatoka Depot - West
country Fiji
posting date15 Jan 2025
deadline24 Jan 2025
Procrument of Furnitures
country Fiji
posting date15 Jan 2025
deadline24 Jan 2025
Supply of Office Materials for Conference Room
country Fiji
posting date15 Jan 2025
deadline24 Jan 2025
Supply of Chlorine Gas Trolley and Chain Blocks
country Fiji
posting date15 Jan 2025
deadline24 Jan 2025
Supply of Grass Cutting Services
country Fiji
posting date15 Jan 2025
deadline23 Jan 2025
Procrument of CrowdStrike Falcon Enterprise Flexible Bundle
country Fiji
posting date15 Jan 2025
deadline21 Jan 2025

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