Increased duties on certain cars to support green technologies
Duty on used cars will be increased by $1,000 while duty on new cars will be increased by 5%.
While announcing the 2022/2023 national budget, Economy Minister Aiyaz Sayed-Khaiyum said the government would also introduce a luxury vehicle tax of $10,000 per vehicle for vehicles over 3000 cc.
To further promote and support the use of green technologies, they are multiplying incentives to support the purchase of electric vehicles and charging stations.
The government had previously announced a 7-year tax deduction and 5% grant for capital investments in infrastructure/charging stations for electric vehicles over $100,000.
The subsidy has now increased to 10% on investments above a lower threshold of $50,000.
VAT and tax duties on all electric vehicles will now be zero-rated to allow accelerated depreciation of 100%. The government will also provide a grant of $5,000 per vehicle if a local business purchases 5 or more vehicles.
The current employment tax scheme expires in 2023 and allows a tax deduction of 300% on first full-time employees, on salaries paid for internships in a related field of study for up to 6 months per year before graduation, and to students employed on a part-time basis.
The reduced corporate tax rate of 10% available to companies listed on the SPSE will only be available for 7 years. Companies that have benefited for 7 years or more will now pay corporation tax at the rate of 20%. This will be effective from tax year 2023.
A 100% tax deduction will be available to businesses on the amount of tuition and living expenses paid for students at a higher education institution specified in the Higher Education Act 2008.
The applicable deduction for living expenses is limited to $7,000 per calendar year and must be paid into a bank account held at a commercial commercial bank in the name of the student.
The 150% tax deduction offered to hotels and resorts that hire local artists such as artisans, dancers and musicians will be increased to 300%.
Sayed-Khaiyum also revealed that the residential housing and development incentive program will be further incentivized.
A 50% developer profit exemption will be available for projects with a minimum investment level of $5 million and at least 10 residential units. Customs concession (zero duty) on the importation of capital goods, installations and machinery. There will be no conditions on the sale price.
A 5-year age limit will be imposed on the importation of second-hand petrol and diesel-powered vehicles.
This will be aligned with the 5-year age limit on hybrid vehicles.
The Euro IV compliance requirement will be maintained.
A transitional period will be allowed to import vehicles over 5 years old provided the vehicle has been ordered, paid for or loaded for shipment to Fiji no later than July 16, 2022 and the shipment arrives in Fiji no later than July 31, 2022. December 2022.
The government will phase out customs protections for Fiji Dairy ahead of the expiry between the government and Southern Cross Foods Ltd on August 31, 2022.
The duty will be reduced from 32% to 5% after the expiry of the agreement on cheese, yoghurt and liquid and powdered milk.
Click here for detailed coverage of the 2022/2023 national budget.