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The interim Government has announced that a new incentive package for the tourism industry, to replace the existing short-life investment package which expires on December 31.
The 2009 tourism incentive package is in two parts: Standard allowance and hotel incentive package.
The standard allowance provides 55 per cent investment allowance on total capital expenditure as long as there is no shift of revenue offshore.
The second segment on the incentives package will have a 10-year tax holiday for capital investment and not less than $7million and import duty exemption on all capital goods including capital equipments, plants and machinery which is not available in Fiji and is utilised to carry out the investment.
“Any hotel development in the Tax Free Regions that entails 25 per cent equity by indigenous Fijian landowners will qualify for an additional 7 years tax holiday on top of the 13 years given under the TFR,” Bainimarama said.
“For new hotel projects set up in other parts of Fiji in which indigenous Fijian landowners own at least 25 per cent equity will qualify for 10 years tax holiday.
“It should also be noted that the Government has allocated $23.5 million to tourism Fiji.
“Government recognises that marketing Fiji tourism is essential and it will continue to provide such funding with certain benchmarks to be achieved by Tourism Fiji.”
