Fijian Attorney-General and Minister for Economy, Hon. Fiji Budget 2020/21 17 July 2020 Contents The Honourable Attorney-General and Minister for Economy, Civil Service and Communications, Aiyaz Sayed-Khaiyum presented his 2020/21 Budget on Friday, 17 July 2020. h�bbd```b``a��A$�a�H*�}L In his speech on the Economy, the Minister for Finance and Planning Hon Dr Philip Mpango reported that in 2020, the national GDP growth is expected to slightly decline from the previous estimates of 6.9% to 5.5%. Our strategic plan is aligned with the Government’s national plan to ensure sustainable and effective performance. He adds that just because it’s safe to travel doesn’t mean people will travel –– but if the deals are good enough, they will fill the planes. Through Fiji Airways, the Fijian Government will give the first 150,000 visitors $400 each to go towards packages including flights, accommodation and Food and Beverages. He says to brace for the “new normal” they have announced Fiji’s biggest-ever tax cut –– a discount of hundreds of millions of dollars, with strategic incentives across age-old industries as well as new arenas –– such as manufacturing and assembly –– which nations are looking to relocate to price competitive locales. Any companies which build buildings for government use, the duty will be waived on all the raw materials, machinery and equipment necessary for construction. Sayed-Khaiyum says in line with the policy across the civil service, the retirement age for those working in municipal councils will be reduced from 60 to 55 in one year’s time. Akbar says she is also happy for the 13,000 plus teachers who will not be subjected to any pay cuts. Kumar says he has never seen such a big reduction in duties for 1,600 items since Fiji’s modern history. He says in addition to the $30 million set aside for this initiative last year, they are adding an additional $30 million this year. National Budget Amendments 2020-2021 2020-2021 National Budget -Summary of Revenue Policies Bills Bill No. “Fiji’s situation demands extraordinary actions to minimise the brunt of the global economic downturn,” Mr Sayed-Khaiyum said. He says they have a system of enforcement but there will be some legislative changes providing specific provisions to empower FCCC. He says they are suspending the Parenthood Assistance Payments announced last year. Prasad adds that he would have preferred a bigger allocation for the Ministry of Health to ensure that our health services are up to par. The Ministry of Women altogether was allocated $127.7 million in the last budget and this year it has been increased to $159 million. He says Government has made $100 million available to make sure every unemployed Fijian is able to access their full relief payments. The CEO of Fiji Hotels and Tourism Association, Fantasha Lockington says they are delighted the Government has delivered by providing relief for both import and excise duties and tax surcharge. %%EOF $127.7 million, comprising $124.8 million for operating expenditure, $2.3 million for capital expenditure and VAT of $0.7 million. The Supplement to the 2020-2021 Budget Address discusses Fiji’s current macroeconomic and fiscal position and forward projections for the next three years. A key focus of the Ministry of Health and Medical Services is to remodel health care service provision so as to maintain readiness to be able to contain future threats from the pandemic whilst ensuring better coverage and quality. In line with Fiji’s 2030 national target to reduce carbon emission by 30%, the government will continue to help vehicle companies with a 55% tariff discount for any purchase of electric vehicles. Minister for Economy Aiyaz Sayed-Khaiyum has announced in the 2020/2021 National Budget that the 6% Service Turnover Tax has been eliminated and ECAL or Environment Climate Adaptation Levy will go down from 10% to 5%. Sayed-Khaiyum says they have allocated funds for the construction of new modernised Police Stations in Nakasi, Nalawa, Nadi and Lautoka. This budget newsletter sets out highlights of the budget measures. Fiji can be a very expensive country to travel, but as I found out, it is possible to travel cheaply! The government has announced tax deduction for certain business arenas in Fiji as … And any profit they make selling the newly developed lots will be tax exempt. 18 Jul 2020 14:46. Fijian Constitution; National Development Plan; Public Awareness; Tenders & EoI; Public Holidays - 2020 ; School Terms - 2020; Speeches Home. Investment brings in $613m in 2018/2019 Financial Year . The Ministry of Education has been allocated $450.6 million for the next financial year. Education Minister Rosy Akbar says while there has been a slight reduction in the free education grant, the focus will be making sure the quality of education is not compromised. He adds they will be taking the next year to review these payments to determine when and if they’ll resume. Minister of Economy, Aiyaz Sayed-Khaiyum while delivering the 2020/2021 Budget. Budget 2020-21 Government to provide grants for first home buyers. He says if you build or upgrade a hospital, depending on your level of investment, you can be granted up to a 20-year tax holiday on your new hospital or up to a 60% tax deduction on your renovation works. The Association of Banks has agreed to defer loan repayments on a case by case basis up to December 31st 2020. For starters, only students who earn marks above 250 on their Year 13 exams will qualify. 2. He says market survey has shown that Fijian resorts and hotels can be overpriced, especially when it comes to food and beverage services adding that as an immediate effect of these tax cuts, they expect the price structures for rooms, food, alcohol –– basically everything –– to drop precipitously. 2019-2020 NATIONAL BUDGET ADDRESS INTRODUCTION 1. From 6 April, workers in the hospitality sector who had lost their jobs or on reduced hours would get up to $US435 from their National Provident Fund (FNPF). #28 Best Value of 50 Budget Hotels in Fiji “ I was due to stay at Serenity Island Resort in April 2020 but due to Covid-19 travel restrictions, I am not able to go. He says they have received a number of applications that would breathe new life, and new jobs, across industries and sectors adding several high-net worth individuals have taken them up on their offer to “escape the pandemic in paradise”. Opposition Leader Sitiveni Rabuka says we all have to be positive about the measurements that have been announced in the 2020/2021 National Budget. The Fiji Revenue & Customs Service is the major funder of the National Budget. Lockington says this is like icing on the cake as they had not expected that. The 20 percent pay cut for all Members of Parliament will continue. #COVID19Budget — Fijian Government (@FijianGovt) March 26, 2020. Fiji Water Price and Guide 2020. Speaking to Fijivillage after the Budget Address, Rabuka says the main purpose of the budget is recovery and we will have to wait and see how much of the recovery can be made from the budget. This will bring the Debt to GDP ratio to 83%. COVID-19 has caused what the Minister described as a once in a century external shock to the global financial systems, the economy, and people’s livelihoods. July 18, 2020 12:45 pm. The total budget for the Ministry of Women, Children and Poverty Alleviation in 2019-2020 is. Koya says the industry stakeholders need to look at that and say that the government has done its part and its now for us to do our part. The Fijian Government | 2019 - 2020 Budget Highlights. More on NEWS. The Social Welfare Program under the Ministry of Women, Children and Poverty Alleviation was allocated $133 million in the 2019/2020 budget while allocation of $140.7 million has been made for this year. Those who are fully unemployed will continue to get $220 per fortnight. Excise duty has been removed on all non-hybrid cars. Sayed-Khaiyum says so for mid-sized tourism operators and other businesses like restaurants, rental car companies and cafes, ECAL is dropping to zero. commitments, including Fiji’s 2013 Constitution. 14 Tax Administration (Budget Amendment) Bill 2020 Bill No. 27/03/2020. Budget 2020-2021. Fringe benefits by employers will be VAT exempt. He adds tourism operators should consider making these changes to their cost structure permanent. 17 July, 2020, 9:53 pm. Survey Flights Over Fiji … $6 million has been allocated for reform and restructure of the Fiji Police Force. Government Budget in Fiji averaged -2.50 percent of GDP from 1992 until 2018, reaching an all time high of 5 percent of GDP in 1998 and a record low of -6.50 percent of GDP in 2001. “How can we take advantage of that? Waqainabete says they understand that there will be more vulnerable people that will need to be assisted due to the current circumstances. Votre budget voyage pour partir aux Îles Fidji. Les Fiji Islanders non indigènes étaient citoyens des Fidji mais n'étaient pas Fidjiens aux yeux de la loi. Fiji’s 2020-21 National Budget will see the Government attempt to spend its way out of the COVID-19 induced recession. In his speech on the Economy, the Minister for Finance and Planning Hon Dr Philip Mpango reported that in 2020, the national GDP growth is expected to slightly decline from the previous estimates of 6.9% to 5.5%. Sayed-Khaiyum says there will be no pay cuts for other civil servants. With the recent announcement of Fiji’s National Budget 2019-2020, FWRM presents Lockington says it’s great that the tourism industry is being recognised that it uses local entertainers and now they can get some incentive. Prasad says the focus has remained on the tourism industry adding that many families would be needing assistance from social welfare given the level of unemployment as an impact of the COVID-19 pandemic. [Source: Fijian Parliament] Government has announced a massive $2 billion stimulus package to fight the impact of COVID-19. The GDP value of Fiji represents less than 0.01 percent of the world economy. Budget 2020-2021: Fiji removes STT to assist tourism industry operators. In addition, for new, non-hybrid cars they are reducing fiscal duty from 15 per cent to 5 per cent. All stamp duties will be abolished as announced in the 2020/2021 national budget, making transactions faster and cheaper for everyone. For those families earning above $50,000 annually, they can be granted $20,000 to build their first home or $5,000 to buy their first home. If you know your dates now we suggest you book early. He says this financial burden has been eliminated for good. With ten easy to find rental locations throughout Fiji, including Suva Airport and Nadi Airport- Budget rent a car is never far away. The Budget would also equip doctors and nurses with the tools they needed to combat the virus and keep the country safe. Honourable Speaker, Honourable Prime Minister, Honourable Leader of the Opposition, Ministers, Members of Parliament, My Fellow Fijians. He adds half of a percent of that new, simplified fee will go into an existing trust fund set aside for the continued development of Fiji’s telecommunications industry, allowing Fiji to further cement its standing as the ICT hub of the Pacific. Apart from our primary mandate, FRCS continues to partner and support other government initiatives as needed. The reduction of mandatory employer and employee FNPF contributions to 5 per cent will be extended through 31 December 2021. by jyoti praitbha . Sayed-Khaiyum says as Fiji’s growing film and television industry is being safely resumed, with beloved shows like Survivor set to continue, their exemptions of exceptional economic value are also safely bringing back vital jobs and money into the country, with more expected to follow. Highlights Economic Outlook Income Tax Tax Administration Stamp duty The 2019/2020 National Budget is expected to pump more money into strengthening Fiji’s resilience to climate change. Sayed-Khaiyum says but in the final third season of the arrangement, they are reducing the guaranteed price for cane from $85 to $70 adding all other support to cane growers will continue. As there is currently no official ban of travel between Singapore and Fiji, and only a… Our strategic plan is aligned with the Government’s national plan to ensure sustainable and effective performance. It also outlines Government’s overall fiscal strategy and direction for the medium term, which is geared towards achieving inclusive economic growth and fiscal sustainability. She says most of the programs will continue. Fiji's Opposition Leader Sitiveni Rabuka says the government has manipulated the numbers in its Covid-19 response Budget unveiled on Thursday. A bottle of Fiji Water may be the most unmistakable product gracing the shelves of grocery stores, markets, and convenience shops around the world. Vous gagnez donc en pouvoir d'achat en visitant ce pays ! Sayed-Khaiyum has confirmed that Fiji will soon drop quarantine requirements for NZ tourists. The luxury vehicle levy has also been removed and the Accident Compensation Levy has been reduced by 50 percent through the next year. Sayed-Khaiyum says the provision allowing landlords to claim tax deductions on the sum for any reductions made in commercial rent will be extended to 31st December 2021. She adds when Fiji’s borders open, it will make Fiji far more competitive. AIYAZ SAYED-KHAIYUM . Article continues after advertisement Government spending will stand at around $3.67b, while revenue is projected at around $1.6b. He further says they have even seen interest by a company looking to not only come to the country to resume operations, but publicly list on the South Pacific South Exchange; so there lies great potential for those looking to take advantage of existing incentives to list in Fiji and even base their headquarters here. He says government funded resources are targeted where they are needed the most. Media Centre Speeches PRIME MINISTER HON. 2020-12-21. endstream endobj 5325 0 obj <>/Metadata 196 0 R/Pages 5322 0 R/StructTreeRoot 520 0 R/Type/Catalog/ViewerPreferences 5345 0 R>> endobj 5326 0 obj <>/MediaBox[0 0 595.32 841.92]/Parent 5322 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 5327 0 obj <>stream Lockington says these will altogether reduce their overhead costs and allow them to create attractive packages which will in turn allow them to offer real value for money. Budget has all your car rental needs covered in Fiji and all at a Budget price. From August 1st this year, Fiji's business license regime will be removed. He has announced that they will also continue supporting micro, small and medium enterprises through their highly-concessionary loan packages. Relief Boxes for Victims. He says a public-private partnership that empowers coastal communities to make sustainability and resiliency central to their development and daily life, the Blue Town Model aims to help these communities adapt to protect the oceans in a way that simultaneously generates economic activity. Sayed-Khaiyum also says that our comeback hinges on holding our place in the global economy. Internships of doctors will be for 2 years. Budget 2020-21 Major tax deductions announced in new budget. WAF was provided with a total budget of $258.7 million in the 2019/2020 National Budget. The 2019-2020 Supplement to the Budget Address provides an overview of Fiji’s current macroeconomic and fiscal po sition and projections for the next three years. Competing for high value-add investment . Social Responsibility Tax (SRT) and Environment & Climate Adaptation Levy (ECAL) !The ECAL component of SRT will be reduced from 10% to 5%. So, if you are now only working three days a week, you will receive $88 every two weeks; if you’re down to working only one day a week, you will receive $176 every two weeks. While making the announcement, Sayed-Khaiyum says $3.67 billion has been projected for government expenditure while $1.67 billion has been allocated for revenue for the 2020/2021 National Budget. He adds within that allocation, $5 million is dedicated to upskilling or reskilling workers whose old jobs have been lost, but for whom new opportunities await. Corporal Narayan recognised for 25 years of service and wants to continue to inspire girls As you can see by the way … Major changes in taxes and policies have been announced in the 2020/2021 National Budget by Minister for Economy, Aiyaz Sayed-Khaiyum to stimulate the economy and to bring back confidence in the different sectors, with a lot of anticipation to see the much needed growth during this recession. 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