Fiji's Taxation

Interesting Report by Special Committee

SUVA, April 28.

THE report and recommendations have been published of the Fiscal Review Committee which was set up by the Governor to study the whole field of Govern ment financial policy in relation to the Colony’s economic position.

Members of the Committee were Messrs. H. W. Davidson (Financial Secretary), J. M. Falvey, Said Hasan, H. E. Snell and Ratu K. K. T.

Mara.

The report is lengthy and is here only briefly summarised.

The Committee takes the view that at this stage in Fiji’s develop ment the Administration should de pend less on direct taxation, such as income tax, and more on indirect taxation.

The Committee urges that more of the cost of education and health services should be borne by those who directly benefit by them.

The Committee says that as Fiji must look primarily to Australia and New Zealand for the capital and skill required for development, personal and company income tax ation rates in Fiji should be kept definitely lower than those in Aus

tralia and New Zealand, so as to attract capital and skilled men; and that company taxation should be arranged in other ways so as to further attract investment.

The Committee recommends several changes in the system of levying income tax, and the intro

duction of the pay-as-you-earn method. It also urges a land tax devised in such a way that land owners will be induced to put their land to profitable use.

There is no indication of how or when these recommendations will be given effect to.