Except for Fiscal Year 2017-2018, the Ministry of Customs and
Revenue, (MCR) have surpassed her yearly revenue collection projection dictated by the Budget in
the last 5 consecutive fiscal years.
And for the current fiscal year which ends next week Tuesday, Revenue Minister Tialavea Fea Leniu
Tionisio Hunt has assured Parliament that the MCR will also meet its revenue projections.
“From July 1 st 2019 to May 31 st 2020, MCR collected $505 million leaving a little over $20 million to
overcome the $$527 million revenue collection budgeted for the current fiscal year.
“And I have been assured by the Ministry that as of today, we have again passed our revenue target
for this fiscal year,” Tialavea announced in the House Wednesday.
Also noted by the Chief tax collector, the MCR has amassed over $40 million tala in excess revenues
for the Government coffers since fiscal year 2015-2016.
The budgeted and revenues collected data were tabled in parliament by the Minister and are as
follows;
FY 2015-2016
Budgeted; $479 million
Collected: $485 million
$6 million excess
FY 2016-2017
Budgeted; $491 million
Collected: $498 million
$7 million excess
FY 2017-2018
Budgeted; $522 million
Collected: $507 million
$14 million shortfall
FY 2018-2019
Budgeted; $530 million
Collected: $551 million
$21 million excess
FY 2019-2020
Budgeted; $527 million
Collected: $505 million (as of 31 st May 2020.)
Tialavea attributes the upbeat revenue collection to his Chief Executive Matafeo Avalisa Viali-
Fautuaalii and her staffs’ diligence in executing new reforms.
“Under the CEO’s leadership, MOR has strengthened revenue collection, through a thorough review
of compliance measures to ensure everyone is paying their fair share of tax.
“This,” says the Minister “has helped MCR to retain the tax burden as low as possible while raising
the revenue we need.”
For the same reason, the Ministry has silently but effectively reviewed exemptions, concessions and
taxation arrangements to ensure to ensure they are in compliance and to eliminate attempts to unfairly
avoid paying tax.
Unpaid taxes from past years have also come under the microscope.
Tax credits also came under MCR scrutiny to ensure that revenues are spent in line with our national
priorities.
He said that the government approach is to identify responsible and affordable measures to raise
additional revenue and find savings from within Ministries and Agencies, while protecting front line
delivery of services.
And to tighten revenue collection MCR will be enforcing her new Tax Invoice Monitoring System,
(TIMS) July at 2020. The initiative will allow businesses’ to calculate their tax obligations.
The initiative is part of the Government’s broader goal of increasing tax compliance and tackling the
hidden economy and tax evasion.
TIMS will also enhance domestic revenue collection and create an equal playing field for all
taxpayers and provide verification of each of their transaction.
It is intended to reduce reliance on hard copy invoices and receipts and therefore lessen industry’s
record keeping costs.
“The consumers and public will also play a leading role, explained the Revenue Minister urging for a
receipt for every purchase made.
“Demand a receipt of purchase. If you don't then you are helping [non-compliant businesses] disobey
the law," he said.
“It is an advantage for businesses which are compliant taxpayers from having to compete with
businesses who evade taxes and can sell their products at significantly lower prices.”
“At the end the day, it’s not just paying taxes owed to government as prescribed by law but also
avoiding any new tax increase that will burden the entire country for the sake of irresponsible
taxpayers looking for ways to avoid paying their dues,” the Minister concluded.