A number of new programmes have been announced in the 2010 National Budget which are expected to benefit both the business community and the poor in the new year.
It is clear that government is now focusing on targeted assistance for low income earners and at the same time to introduce new incentives that will increase business activity, investment and growth.
A lot of focus has been placed on poverty alleviation with new programmes.
While focusing on this, Prime Minister and Finance Minister, Commodore Voreqe Bainimarama has announced a monthly Food Voucher program for the people who will be registered under the Family Assistance Program.
It has also been revealed that the Free School Bus Fare Program will continue in 2010 but it will be based on an income test level.
The government has also announced a decrease in fiscal duty for 2010 for a number of items.
A number of items have now been made duty free.
Fiscal duty on Perfume, Cosmetic, Pre-Shaving or after shaving preparation, cameras, sunglasses, watches, Laptops, IPod, MP3 and MP4 players and Jewellery will be reduced from 15 percent to 0 percent.
Duty has also been reduced from 5 to zero percent for Video and Electronic games and USB Wireless modems.
This comes into effect from the 1st of January 2010.
Zero rating of VAT for locally produced eggs has been removed while the government has imposed 5 cents per litre excise duty on all carbonated soft drinks.
Good news for companies as the government has also decreased the Corporate Tax from 29 percent to 28 percent.
And it’s even better news for those companies listed under the South Pacific Stock Exchange as these companies will be subject to a reduced corporate tax rate of 20 percent next year, provided the companies have more than 40 percent local equity shareholding.
The government has also announced that it will continue funding for HART, squatter upgrade, and resettlement programme in the Housing Authority and Public Rental Board.
At the same time a new Housing Assistance Grant Scheme for families will be introduced for those that cannot meet the bank deposit to take a first home loan but may be in a position to make the loan repayments.
No changes in resident Individual Income tax rates
There have been no changes in the resident Individual Income tax rates.
If you earning $15,000 and below, you will not be subjected to pay any tax.
Those who are earning $15,001 to $15,600 they will be paying 25 percent of excess over $15,000.
People earning between $15,601 and $22,000 will have to pay $150 plus 31percent excess over $15,600.
All those earning more than $22,001 and above will have to pay $2,134 plus 31 percent of excess over $22,000.
New Tourist VAT Refund Scheme to be implemented
A number of incentives also for the tourism industry.
A new Tourist VAT Refund Scheme will be implemented on 1st February next year to provide departing tourists a refund of 12.5 percent VAT on their purchase above $500.
This is to encourage tourist spending and at the same time boosting business.
Commodore Bainimarama has also announced that the shopping and liquor trading hours will be extended in some centres of Fiji.
This will result after the zoning of the centres.
Bainimarama said the government will continue with tax free region incentives.
2010 National Budget just announced
The 2010 National Budget has just been announced with the various Ministries receiving decreased allocations for next year.
Our reporter Roneel Lal with more on the allocations to the various Government Ministries.
Once again:
The Education Ministry received the largest budget allocation of $312.7 million, which will see $37.6million go to USP, $14 million for FIT, $3.6million to the University of Fiji while $6.5 million to the newly established National University of Fiji.
The Health Ministry received a decrease in their allocation for 2010 where they received $148million for 2010 whereas they had received $149 million last year.
The Fiji Police Force received an increased budget from $76.3million in 2009 to $78.4million for next year to see the establishment of 3097 posts in the new year.
Meanwhile, the Fiji Military Forces received a decreased allocation of $92.5 million for 2010 compared to $98.8million for 2009.
This is a result of a decrease in allocation for missions to Iraq and Sinai.
Looking at the Ministry of Transports and Works, they received $141.7million dollars for major plans like the upgrades Vunidawa Road, the Ratu Dovi and Kings Road as well as upgrading rural roads and the Suva-Nausori corridor.
The Public Utilities ministry received a decreased budget of $124million compared to $127million while the Tourism Ministry received $23.5 million in their 2010 Allocation.
