Increasing the VAT rate and taxes on luxury goods and fuel can be part of the strong and credible revenue measures that Fiji can explore.
That is part of the policy discussions and recommendations in the latest International Monetary Fund Staff report on Fiji.
The IMF staff stressed that fiscal consolidation will require credible expenditure and revenue measures.
It said substantial efforts are needed to reduce the wage bill through a well-designed civil service reform.
The report said there is also a potential to trim subsidies by better targeting assistance to vulnerable groups and to improve expenditure management by enhancing transparency and accountability.
The IMF Staff Report on Fiji states that revenue can be strengthened by eliminating tax holidays, streamlining tax incentives and improving tax administration.
It said excise taxes on luxury goods and taxes on petroleum could be raised and the VAT rate increased if necessary.
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