FHTA welcomes tax exemption for existing bookings

The Fiji Hotel and Tourism Association (FHTA) has expressed its approval of the government's confirmation that the Tourism Services Tax (TST) will only apply to bookings made on or after September 1. This decision exempts existing bookings from the new tax, a move the FHTA has advocated for since consultations began.

FHTA chief executive officer Fantasha Lockington stated that this exemption removes the risk of visitors facing unexpected charges upon arrival for holidays booked and paid for months in advance. She described the outcome as "genuinely welcome" and "the right one," asserting that it restores fairness for visitors who planned their holidays in good faith. Lockington also noted that it eliminates a significant source of confusion and reduces the risk of booking cancellations for the industry.

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This is a genuinely welcome result, and the right one. t restores fairness for visitors who planned their holiday in good faith, and it removes a real source of confusion and the higher risk of booking cancellations for the industry. We also acknowledge Government’s advised commitment to listening to industry and working collaboratively on policies that support sustainable economic growth.

The association acknowledges the government's commitment to listening to industry feedback and collaborating on policies that support sustainable economic growth. However, FHTA is still awaiting updated Standard Interpretation Guidelines and further guidance from the Fiji Revenue and Customs Service, expected before September 1. Lockington emphasized the need for clear, practical answers to ensure correct implementation of the new tax rules, particularly for systems that need to be updated before the deadline.

The 5% TST applies from September 1 to a specific list of tourism businesses with turnovers of $2 million and above, for particular tourism services, and will be in effect for 12 months. While pleased with the outcome regarding existing bookings, FHTA continues to work with the Fiji Revenue and Customs Service to obtain the necessary clarity for the tax's application.

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While not complete in terms of the clarity around the application, we are absolutely delighted with the outcome. Members still need clear, practical answers before 1 September and we will continue working with FRCS to get that guidance despite the ever-shortening time left to load systems that will support correct implementation.