Fiji has recorded its highest-ever annual tax and customs revenue collection, with the Fiji Revenue and Customs Service (FRCS) collecting a net $3.51 billion in the financial year ending July 31, 2026, signalling continued resilience in business activity despite mounting global economic pressures.

The record collection exceeded the Government’s annual revenue forecast of $3.374 billion by $136.2 million, while also surpassing last year’s collection of $3.485 billion by $25.8 million.

FRCS Chief Executive Officer Udit Singh says the result reflects the strength of Fiji’s business sector and labour market at a time when economies around the world continue to grapple with geopolitical tensions, fuel supply disruptions and inflation.

He says businesses continued operating, employers maintained jobs and wages, trade remained active, and taxpayers continued to meet their obligations despite a challenging economic environment.

The strongest gains came from Net Income Tax, which increased by $53.7 million, Net Customs collections, which rose by $46.6 million, and Departure Tax, which increased by $43.7 million.

Within income tax, Pay As You Earn (PAYE) collections grew by $37.9 million, while Company Income Tax increased by $28.3 million, suggesting businesses remained profitable and employment levels remained relatively stable throughout the year.

Other revenue streams, including Fiscal Duty, Domestic Excise Duty, Withholding Tax and Import Excise Duty, also recorded annual growth.

However, Net Value Added Tax (VAT) collections fell by $102.8 million compared with the previous financial year.

FRCS says the decline was largely expected following the reduction of the VAT rate from 15 percent to 12.5 percent, along with the timing of refunds and payments, and should not be viewed as a sign of weaker economic activity.

While the overall annual performance was strong, revenue collections in July softened.

FRCS collected $288.8 million during the month, which was $16.6 million below forecast and $22.3 million lower than the same month last year.

The agency attributes the decline to the timing of Company Income Tax payments and higher refund payouts, noting that strong collections over the previous eleven months ensured the annual target was comfortably exceeded.

Singh says the result aligns with the Reserve Bank of Fiji’s assessment that the economy continues to grow, albeit at a slower pace and amid risks from fuel prices, inflation and global uncertainty.

He says while the record collection provides confidence in Fiji’s economic and fiscal position, risks remain and sustained growth will depend on continued business activity, employment and trade.

Singh also acknowledged taxpayers, businesses, employers, importers, exporters, customs brokers and tax agents, saying their contributions fund essential public services including healthcare, education, infrastructure, social assistance and border protection.