The Government is making moves to ensure Fiji becomes a less carbon-reliant and more energy-secure society.
Minister for Economy, Aiyaz Sayed-Khaiyum says they will be enhancing the Electric Vehicle Charging Incentive with a lowered minimum investment threshold of $50,000 from $100,000.
Sayed-Khaiyum says the subsidy will be increased from five percent to ten percent on capital expenditure incurred in the development of electric vehicle charging stations.
The government will zero-rate VAT and Duty on all Electric Vehicles and allow accelerated depreciation of 100%.
“Individuals and businesses that purchase vehicles or more will receive a $10,000 cash rebate per vehicle. Additionally, 100% accelerated depreciation will be allowed for businesses purchasing electric vehicles. We will also increase the import duty on passenger cars to $1000. Import duty on new passenger cars will be increased by 5%.”
Sayed-Khaiyum says they are also introducing a luxury vehicle tax of $10,000 per vehicle for vehicles above 3000cc.
He adds five-year age limit will be imposed on the importation of second-hand petrol and diesel-powered motor vehicles.
This he says, aligns with the current five year age limit on hybrid vehicles, and the Euro IV compliance requirement continues.
“To help provide alternatives to diesel generators in rural and remote communities and support the rural electrification program, the duty on Liquefied Petroleum Gas (LPG) will be reduced from 4 cents per kg to 2 cents per kg. The reduced duty will be applicable on LPG supplied for power generation and auto gas only.”
Sayed-Khaiyum adds this will be administered as a drawback facility.
The Minister also announced that the 150% tax deduction available to restaurants, taverns, hotels and resorts that hire local artists such as craftsmen, dancers and musicians will be increased to 300%.
He further stated that the Corporate Tax rate, applicable to companies relocating their global or regional headquarters will be increased from 17% to 20%.
This will be effective from Tax Year 2023.
Sayed-Khaiyum says the 10% reduced rate of Corporate Tax available to companies listed on the South Pacific Stock Exchange will only be available for 7 years.
The Minister further stated that the employment taxation scheme, currently set to expire in 2023, will now be extended till 31 December 2024.
The scheme provides a 300% tax deduction of the amount of any salaries or wages paid for first-time employees.
A 300% tax deduction will also be extended for wages and salary paid to persons for apprenticeships.