Tax collections continue to look promising as the Fiji Revenue and Customs Authority has continued its strong performance in 2014, posting a collection of $1.54 billion for the last nine months.

Chairman Ajith Kodagoda said the collection, which is $99.5 million above target, is reflective of a number of issues.

Kodagoda said the economy is growing well based on the policies that have been implemented in recent years.

He said it also showed that the tax reforms are bearing fruit and tax compliance is improving with reduced arrears as at September.

The revenue collection to September totalled $1.54 billion, which is an improvement of 17.3 percent over 2013.

The back-to-back significant levels of revenue growth rates of 6.3 percent in 2013 and 17.3 percent in 2014 shows increased economic activity.

FRCA said revenue growth to September is one of the highest in the last 10 years.

Value Added Tax was the major contributor to the Government coffers with collection totalling $582 million.

Revenue from Income Tax totalled $324.8 million while trade taxes totalled $363.3 million.

Other taxes such as Service Turnover Tax, Fish Levies, Departure Tax, Stamp Duty and Capital Gains Tax contributed $265.7 million.

Kodagoda also said that revenue is growing faster than the economy.

FRCA’s target for revenue collection in 2014 is $2.039 billion.