APPENDIX TABLESFiji WT/TPR/S/24
Page 71
Table AIII.1
Products onwhich tariff concessions aregranted
(Percent)
Description ofgoods Tariff rates Value-added tax
Wood preservatives Free 10
Family planning goods Free Free
Pallets Free 10
Infants 'food, foodsupplements, preparations withmedicinal properties 5 10
Sanitary protection products, tampons, etc. Free 10
Life-saving appliances Free 10
Fire-engines andfire-fighting equipment Free 10
Trade samples Free Free
Parts ofmilking machines Free 10
Goods imported fordisabled persons Free Free
Artificial parts ofbodies, corrective spectacles, etc. Free 10
Educational materials Free 10
Equipment andrequisites forgames andsports Free 10
Rubber tyres fortractors 10 10
Vessels approved bytheMinister ofFinance andEconomic Development 10 10
Lamps andparts other thanelectrical energy assource oflight Free 10
Printed matter forlocal product advertisement Free 10
Solar power cookers andrangers Free 10
Microcomputers value <F$2,000 Free 10
Bone china goods Free 10
Lead crystalware Free 10
Divers 'wetsuits 10 10
Goods produced ormanufactured inForum Island Countries Variable 10
Breakfast foods 5 10
Laboratory andpharmaceutical goods 5 10
Animal identification tags 10 10
Issued currencies Free Free
Property ofpersons deceased Free Free
Medals awarded Free Free
Trophies awarded Free Free
Tourist vessel oraircraft Free Free
Miniature flags, buttons, brooches oforganization Free Free
Packaging goods Free 10
Special vehicles imported byorganizations forspecialist work 20 10
Goods imported directly foruseby:
President ofFiji Free Free
Diplomatic Missions Free Free
International Organizations Free Free
Members ofaState orForeign Mission Free Free
Consulates Free Free
Consular officers Free Free
UNESCO consignments Free 10
Churches, temples andMosques Free 10
Private individuals forgoods intheamount of<F$200 Free Free
International airport concessionaires Free 10
Aircraft communication andmaintenance agency Free 10
Charitable andreligious organizations Free Free
Table AIII.1 (cont'd)WT/TPR/S/24 Trade Policy Review
Page 72
Description ofgoods Tariff rates Value-added tax
International orlocal airlines Free 10
Disembarking passengers withgoods <F$400 except goods ofHS22,24,86
and87Free Free
Disembarking residents except foods ofHS22,24,86and87 Free Free
Initial resident, except goods ofHS22,24,86and87 Free Free
Ashipping company (forms andtags) Free 10
Hospitals (medical items) Free Free
Universities (teaching aids) Free Free
Radio stations Free 10
RedCross Society Free 10
Organizations inneed(approval bytheMinister ofFinance andEconomic
Development)Variable 10
Infant industries (approval bytheMinister ofFinace andEconomic Development) Variable 10
Source: Government ofFiji.Fiji WT/TPR/S/24
Page 73
Table AIII.2
Products covered bynon-automatic import licensing
Items Controlling authority
Allplants MAFF
Timber MAFF
Margarine Ministry ofHealth
Condensed milk Ministry ofHealth
Transmitters andtransceivers Ministry ofInformation
Potable spirits (three-years maturity) Customs
Whale teeth (asacultural taboo) Minister ofFijian Affairs
Motor vehicle radar detectors Ministry ofInformation
Mechanical caneharvesters MAFF
Television broadcasting station gear Ministry ofInformation
Gold MOFED
Screw fasteners forroof(cyclone standard) MOFED
Colour photocopiers MOFED
Radio broadcast transmitters Ministry ofInformation
Liveanimals MAFF
Arms andammunition Commission ofPolice
Copyright breach Customs
Merchandise andmarks breach Customs
Dangerous drugs Ministry ofHealth
Leaves andbranches oftreesoriginating inQueensland,
Papua NewGuinea ortheSolomon Islands MAFF
Soilofanycountry MAFF
Lubricating oil MCITPE
Butter Ministry ofHealth
Methylated spirits Ministry ofHealth
Saltwithout iodine Ministry ofHealth
Stills Customs
Currency other thanofpassengers Reserve Bank ofFiji
Poisons Ministry ofHealth
Source: Customs Regulations, 1994.WT/TPR/S/24 Trade Policy Review
Page 74
Table AIII.3
Taxincentives bysector inFiji
Incentives Description Legal basis Process
1. General (cross-sector) incentives
Income tax
exemption -
NewIndustriesForenterprises deemed tobenewindustries bytheMinister,
income taxexemptions foruptoeight years. Theexemption
applies tothegreater ofprofits uptoF$8,000 p.a.or15per
centofthelesser ofpaid-up equity capital, totalfixed capital,
ortotalfixed capital investment. Thepercentage oftaxable
income exempted isbetween 20and25percentforlabour
intensive firms.Income TaxAct
Section 16(2)(b),
3rdScheduleCompanies make
application tothe
Minister ofFinance
andEconomic
Development. The
activity ofthe
company must be
deemed expedient to
development ofFiji.
Income tax
exemption -
Export
IncentivesForenterprises engaged inthetrade andproduct of
manufacturing, processing, orassembly including the
provision ofservices, themanufacture orproduce ofdeep-sea
fishing orofproduction ofminor agricultural commodities
whoexport inexcess ofF$10,000 oftheiroutput. The
income taxconcession istheexemption ofthefulltaxable
profit inrespect ofexports. Thebenefit isfor13years and
canbeextended forafurther fiveyears.Income TaxAct
Section 16(2)(d),
5thScheduleEnterprises typically
make application
through theFijiTrade
andInvestment Board
(FTIB). TheFTIB
makes arecommen-
dation totheMinister
ofFinance and
Economic
Development.
Income tax
exemption/
holiday for
TFF/TFZ
enterprisesEnterprises exporting inexcess of80percentoftheirannual
output canbedesignated asTaxFreeFactories/Tax Free
Zones (TFF/TFZ). Theeligible trades orproducts areasin
thepreceding case. Theincome taxexemption isthesame as
inthepreceding casebutisfor13years. TheMinister may
where itisappropriate reduce the80percentexport criteria.
Sales ofgoods from TFF/TFZ enterprises tothedomestic
market areviewed asimports andsubject toduty.
Enterprises engaged inre-export of80percentormore of
theiractivities orenterprises supplying 80percentormore of
theirannual output toaTaxFreeZone maythemselves be
eligible fordesignation asaTaxFreeZone.
Dividends from TFF/TFZ enterprises toresident shareholders
aresubject onlytofinalwithholding of15percent.Income TaxAct
Section 16(2)(d),
5thSchedule,
andTaxFree
Zones Decree,
1991Enterprises typically
make application
through theFTIB.
TheFTIB makes a
recommendation tothe
Minister.
Income tax
concessions on
capital costsForsubstantial capital expenditure onplant, machinery or
buildings deemed expedient toFijieconomic development, the
capital expenditure canbewritten-off infiveyears outofeight
years where thefirstyearistheyearofexpenditure.Income TaxAct
Section 21.
Allowances for
Depreciation and
Improvements,
Instructions,
1981, PartIV.
Income tax
concessions on
capital costs
incurred to
improve fuel
economyConcessions forcapital expenditure thatreduce energy usage.
Immediate expending and50percentallowance forreduced
electricity andfueloilusage. Fueleconomy allowance ofup
to40percentofexpenditure available.Income TaxAct
Section 21.
Allowances for
Depreciation and
Improvements,
Instructions,
1981, PartV.
Income tax
concession on
marketing
expensesWrite off150percentofthecostofmarketing andpromotion
ofexports.Income TaxAct
Section 21(1)(p)
Table AIII.3 (cont'd)Fiji WT/TPR/S/24
Page 75
Incentives Description Legal basis Process
Fiscal duty
exemptionsThewhole orpartofanydutypaidonimported goods maybe
refunded orexempted iftheMinister ofFinance and
Economic Development issatisfied, interalia,thatthegoods
arebeing imported forapurpose thatwillbenefit thecountry.
Incontrast toother enterprises, which mayalsobenefit from
duty-free imports ofcapital goods andmaterials, theTFF/TFZ
enterprises benefit from duty-free importation ofbuilding and
office equipment thatother enterprises paydutyon.Non-
TFF/TFZ garment enterprises normally arerequired topay
dutyonmaterial imports.Customs Act
Sections 10,11
andRegulationsOnrecommendation of
theComptroller and
Ministerial discretion.
TFF/TFZ imports
automatically dutyfree
whereas, withthe
exception ofalistof
items inPart3ofthe
tariff, enterprises must
apply forduty
remission orusethe
dutydrawback
provisions.
2.Agriculture
Income taxloss
carry forwardTaxlosses maybecarried forward indefinitely Income TaxAct
Section 22(1)(iii)
Income tax
concession on
capital
expendituresExpenses ofcapital expenditure incurred, interalia,onland
improvement.Income TaxAct
Allowance for
Depreciation and
Improvements
Instructions,
1981 PartVI
Income tax
holiday fornew
firmsFive-year taxexemption (holiday) tonewcompany from
designated agricultural enterprise withtheexemption being
granted inanyfiveoutofthefirsttenyears ofproduction.
Benefit ofinitial allowance canbepostponed. Losscarry
forward commences afterthefirstfiveyears implying atotal
of11years ofeffective losscarry forward.Income TaxAct
Section 16(2)(f)
7thScheduleCompany applies to
theMinister of
MCITPE andthe
Minister designates
rural enterprise eligible
fortaxholiday.
Concessionary
fiscal dutyConcessionary dutyof10percentonequipment Equipment must be
listed inSchedule A
andsubject toapproval
oftheCustoms and
Excise Department.
Additional fiscal
duty
concessionsAdditional fiscal dutyconcessions onfarmequipment, seeds,
fertilizer, etc.Liaison withthe
Customs andExcise
Department
3.Fisheries
General income
taxconcessionsEnterprises inthefishery sector -processing ofdeep-sea fish-
areeligible forthegeneral income taxconcessions identified
in1.See1above See1above
Fiscal duty
concessionsTFF/TFZ enterprises benefit from fiscal dutyexemptions.
Non-TFF/TFZ enterprises benefit from concessionary fiscal
dutyof5percent(versus standard 25percent) onvessels;
duty-free fishbaitsandspecialized fishing equipment.
4.Forestry
General income
taxconcessionsEnterprises intheforestry sector areeligible fortheincome
taxconcessions identified in1.See1above See1above
Fiscal duty
concessionsTFF/TFZ enterprises benefit from fiscal dutyexemptions.
Customs dutyexemptions onlogging equipment, sawmilling
equipment, soilcultivation, harvesting andgrading.Customs Act
Sections 10and
11Recommendation of
theConservator of
Forests
5.Mining
General income
taxconcessionsEnterprises inthemining sector areeligible forthegeneral
income taxconcessions identified in1above.See1above See1above
Table AIII.3 (cont'd)WT/TPR/S/24 Trade Policy Review
Page 76
Incentives Description Legal basis Process
Income tax
concessions in
relation to
capital costs(i)Exploration expenditures canbewritten-off against
income from allsources.
(ii)Onefifthofcapital expenditures incurred inthe
development ofmines, andextraction, treatment etc.of
minerals maybewritten-off ineachoffiveyears outof
theeight years following theexpenditure.Income TaxAct
Section 21(c)(ii)
Income TaxAct
Section 23Discretion ofthe
Commissioner
6.Manufacturing
General income
taxconcessionsEnterprises inthemanufacturing sector areeligible forthe
general income taxconcessions identified in1above.See1above See1above
Fiscal duty
concessionsSame as1above See1above See1above
7.Construction
Income tax
concessions on
capital costsOnefifthofcapital expenditure canbewritten-off ineachof
fiveoutofeight years where thefirstyearistheyearthe
building iscompleted. Residential buildings andhotels are
excluded andtheallowable capital expenditure islimited tothe
lesser ofF$20 million ortheactual cost.Income TaxAct,
allowances for
Depreciation and
Improvements
(Amendment)
Instructions,
1993 PartVIIIApplication tothe
Commissioner
Fiscal duty
concessionsSame as1above See1above See1above
8.Financial sector
Dividend
taxationExemption ofdividend taxation inthehands oftherecipient
resident taxpayers ifthecompany paying thedividend islisted
ontheSuva Stock Exchange.Income TaxAct
section 21
9.Tourism
Income tax
concessions on
capital costsThetourism sector canbenefit from thegeneral incentive on
accelerated depreciation.See1above See1above
Income tax
concessions on
capital costs of
tourist vesselsAninitial capital allowance forinvestment intourist vessels
constructed andusedinFiji. Theallowance is55percentof
theexpenditure andisoverandabove standard depreciation
provisions. Theallowance istobewritten-off against income
generated bythevessel. Where theallowance isnotutilized
afterthefirstthree years itmaybesetagainst other tourist
source income.Income TaxAct
Section 16(4),
8thScheduleEnterprise makes the
application tothe
Minister forTourism
Income tax
concessions on
costs ofhotel
construction,
renovation and
refurbishmentAninitial capital allowance forbuilding orextending ahotel.
Provision isnowalsomade forrefurbishment andcapital
maintenance. Theallowance is55percentoftheexpenditure
andisoverandabove thenormal depreciation provisions.
Losscarry-forward commences afterfiveyears providing
effective losscarry-forward of11years.Income TaxAct
Section 16(4)
andNinth
Schedule and
Hotel AidActEnterprise makes
application toMinister
forTourism who
makes recommendation
totheMinister
Income tax
concession
Visitors Bureau
contributionContributions byenterprises inthetourism sector totheFiji
Visitors Bureau canbewritten-off attherateof150percent.Income TaxAct
Section 21(1)(f)
Fiscal duty
concessionsSee1.Inthetourism sector theeffective ceiling onduties is
10percent.Customs Tariff
ActCode 22
10.Film making
Income tax
concessionIncome taxexemption orreduced rateforindividuals engaged
bynon-resident filmcompany tomake films inFiji.
11.Public enterprises
Income tax
concessionTheActsgoverning many public corporations exempt the
corporation from thepayment ofincome tax.Various acts
Source: IMF, "Fiji: Company Income TaxandTaxIncentive Reform", April 1995.Fiji WT/TPR/S/24
Page 77
Table AIV.1
Hotel occupation, 1990-95
Number ofrooms Room occupancy
(percentage)
1990 4,229 60.2
1991 4,466 51.9
1992 5,050 51.1
1993 5,059 48.4
1994 5,065 54.5
1995 4,913 53.9
Source: FijiBureau ofStatistics, Current Economic Statistics, October 1995.