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Five new industries under the Customs (Prohibited Imports and Exports) Amendment Regulations 2005, will now receive duty concessions. Cabinet agreed last week that in order to allow entrepreneurs inject additional investment and contribute to economic growth, government would provide tax relief to such investments. These investments include: - Registered Mini Bus Operators fiscal duty reduced on second hand and new vehicles to "15%" and Import Excise to "Free"; - Registered Taxi Operators reduced fiscal duty on LPG-run vehicles and Import Excise to "Free"; - Water Meter Boxes fiscal duty reduced to "3%"; - Hydroponic Green House fiscal duty reduced on green house and accessories to "Free" - Trophies, Medals, Ribbons and similar items fiscal duty reduced to "Free"; and Disposable Ball Pen Refill fiscal duty reduced to "3%". It is understood that after the announcement of the Annual Budget last year, submissions were received from various industries in regard to revenue policy measures that adversely affected their respective industries. "It is, therefore, the normal process to rectify justifiable anomalies that arise, as a result of the following yearıs revenue policy measures," said the Minster for Finance and National Planning Ratu Jone Kubuabola. The general principle, the Minister added is to allow concessions for industries that inject additional investment, contribute to economic growth, provide essential services and utilities, and generate employment. Key industries that currently benefit are: Bus industry; Tourist Coach Operators; Logging; Sugar Cane; Dairy; Fishing; Manufacturers; Mining; Shipbuilding; and Electricity. A reduction in fiscal duty would assist mini-bus operators in purchasing new buses thus reducing their cost of business, and as a result improving the range and quality of service. Concessions to the taxi industry for LPG-run vehicles, will not only assist the taxi industry in running their business on cheaper fuel costs, but the general public will also benefit by paying lower fares. Furthermore, in a line with concessions on Resource Based Incentives, this year investors engaged in fisheries and agriculture sectors will qualify for a 200 percent deduction on capital expenditure for a period of 5 years. Additionally, a 100 percent deduction will be made available this year for agriculture, fisheries and forestry businesses engaged in value adding process with 50 percent local content. And besides all these concessions, Income Tax Act will has been further relaxed to allow for a wide range of depreciation-related incentives beginning from this year. This move is also seen as a step forward in view of supporting investments in the country. These include :- - accelerated depreciation on buildings to be extended from 2007 to 2010; and - a 100 percent write-off on expenditure in the year incurred for water storage facilities and renewable energy plant. -End- |
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