A three percent credit card levy is being removed. This was part of a line-up of announcements in the 2016-2017 National Budget address in Parliament last night.
Highlights include a 10 percent capital gains tax on the sale of ships and boats by the Fiji Revenue and Customs Authority.
Attorney-General and Finance Minister, Aiyaz Sayed-Khaiyum noted capital gains tax was charged on the sale of any capital asset, which now includes ships and boats.
It wont be charged, however, if a it’s the first time for a person to sell property that they live in. If they sell another property – regardless if that property is being occupied – the 10 percent capital gains tax will be imposed by FRCA.
The policy will heighten efforts to collect revenue from those who regularly sell property but avoid being taxed by declaring the property as their principle place of residence.
Forfeited deposits will also now be taxed. Debt forgiveness will also incur income tax, while the debtor will also have to pay income tax. Reimbursement for expenses under professional services fees will now incur non-resident withholding tax.