KPMG Fiji Managing Partner, Lisa Apted

KPMG Fiji Managing Partner, Lisa Apted says reforms are critical to enhance the country’s tax collection capabilities.

Speaking during Dialogue Fiji’s post-budget forum last night, Apted stressed that the sooner these reforms are implemented, the better we can alleviate local tax burdens.

She elaborates that a key component of the proposed reform is the introduction of a dividend tax.

“If you draw a dividend tax-free after that, as an individual, you’re drawing a tax-free salary. The dividend tax really was about bringing about equity between people who pay tax and people who don’t.”

Apted believes that when examining corporate operations, it’s important to consider the effective tax rate, what percentage of income is taxed, and how much revenue that generates.

She suggests that by introducing a dividend tax, the government seeks to ensure that all individuals contribute their fair share to the national tax system, thereby promoting greater equity and supporting the nation’s fiscal health.