The Ministry of Customs and Revenue has exceeded its revenue collection goals with $730 million for 2023/2024 financial year compared to $663 million that was forecasted. 

Deputy Prime Minister, Tuala Iosefo Ponifasio revealed the successful work carried out by the Ministry under his watch during the recent budget debate in Parliament. 

The set target for revenue collection for 2023 to 2024 was $663 million but by the end of May 2024, the M.C.R. had already surpassed that expectation recording $686.4 million in revenue. 

Tuala said by 27 June the M.C.R. collected $730 million which has already exceeded the target for the financial period of 2023 to 2024 and anticipates a greater amount by June 30. 

He continued to note the Ministry continues to work hard to collect revenue appropriated for the financial year noting the new target set by the Ministry of Finance for 2024/2025 for revenue collection is $720 million. 

The M.C.R. relies heavily on business and government entities in its revenue collection work. 

The Minister of Finance, Lautimuia Uelese Vaai in his budget address stated the government is not introducing nor increasing any taxes for the 2024/2025 fiscal year. 

Instead, he said the focus is on improving tax compliance given the high level of forecasted economic activity. 

“Total receipts are anticipated to increase by 7 per cent, driven by an 18 per cent increase in External Grants equivalent to $30.4 million in nominal terms, and a 4 per cent increase in Ordinary Receipts equivalent to $33.3 million in nominal terms,” said Lautimuia. 

The 2024/2025 Main Estimates anticipate a cash deficit of approximately $153.6 million equivalent to 2.1 per cent of GDP under the Government Finance Statistics (GFS) format.