Friday 19 June 2026

The Fiji Commerce & Employers Federation (FCEF) welcomes the National Budget 2026–2027 as fair and responsible, given the limited fiscal space the Government is operating under and the ongoing strain from the current fuel crisis.
FCEF Chief Executive Officer, Edward Bernad, said the budget is not a typical election budget but instead provides targeted support to key sectors of the economy and vulnerable members of society. It also recognises the importance of a strong private sector, reflected in the decision not to increase corporate tax, the emphasis on productivity-linked wage considerations, and the partial reinstatement of the employers’ training levy.
From a private sector perspective, FCEF highlights the following positives:
1. Relief for cost pressures in key sectors
The budget provides relief against the high cost of doing business through:
> Extension of fuel duty exemptions for hotels not connected to the EFL grid, mining operations (for power generation), and manufacturers (for boilers).
> Extension of diesel duty concessions for bus operators, shipping, EFL, manufacturers, mining, and eligible hotels (power generation) to 31 October 2026.
> Reduction of employer FNPF contributions from 10% to 8% from 1 August 2026 to 31 July 2027, delivering an estimated $100 million in savings to support recovery, employment, and investment.
> Employers contributing above the mandatory 8% FNPF rate, up to 10%, will be eligible for a 150% tax deduction on the additional contribution amount.
The budget also reduces customs tariffs across key sectors:
> Construction: aluminium structures and PVC boards reduced from 32% to 15%, and surveillance cameras from 5% to 0%
> Food and catering: flavoured milk reduced from 32% to 15%, and plant-based food preparations from 5% to 0%
> Transport: passenger vans (10–15 seater) reduced from 5% to 0%
2. Strengthening skills and employment
The budget strengthens labour market outcomes through increased investment in skills development:
> Increase in Training Grant Scheme allocation from 0.1% to 0.5% (approximately $15 million, up from the current $2.5 million)
> Allocation of 0.1% of the training levy to the Fiji Learning Institute for Public Service (FLIPS)
> Introduction of a 150% investment allowance for businesses establishing training or technical centres
> Extension of 500% tax deductions for wages supporting apprenticeships, work placements, and part-time employment to 31 December 2026
> Extension of 400% tax deductions for employing persons with disabilities to 31 December 2026
3. Supporting investment and investor confidence
> The budget provides targeted tax holidays to encourage investment in strategic sectors:
> Cement mill establishment ($20 million and above): 13-year tax holiday
> Mahogany sawmill establishment ($5 million and above): 5-year tax holiday
> Joint ventures with 30% iTaukei shareholding in eco-tourism, culture, and arts:
>7-year tax holiday for investments between $5–$10 million
>13-year tax holiday for investments above $10 million
4. Improving access to business funding
The budget introduces incentives to broaden access to finance:
> 5-year tax holiday for Peer-to-Peer Lending (P2PL) and Equity Crowdfunding (ECF) platform providers
> Tax exemption on interest income for investors in licensed P2PL platforms up to $200,000 per annum
> Tax incentives for institutional investors in licensed P2PL platforms, capped under the Access to Business Funding (ATBF) Act
> Extension of Capital Gains Tax (CGT) exemption for disposal of shares in listed companies undertaking transactions under the ATBF Act
FCEF looks forward to working with Government to ensure the budget measures translate into real economic impact for businesses, workers, and communities across Fiji.
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For enquiries, contact:
Mrs. Gaylene Kamali Manager Advocacy and Corporate Communication,
Fiji Commerce & Employers Federation
T: +679 331 3188| M: +679 9983098 | E: macc@fcef.com.fj | www.fcef.com.fj
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