Tax levied on natural water extraction

January 29, 2009 11:39:32 AM

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No more controversies on taxing Fiji bottling companies for the extraction of natural artesian water.

It has now been gazetted that all companies that will extract water in its natural state, including artesian, natural and spring water, will be levied a water resource tax effective this month.

This water resource tax will be assessed by an officer through measuring or examining the volume of water extracted for the purpose of ascertaining the amount of tax leviable on them.

The water resource tax promulgation released this month gives effect to the water tax as announced by the interim Minister for Finance and National Planning in his budget address last November.

Subject to provisions of the promulgation, a tax appropriate rate shall be levied upon the extraction of water in its natural state, including artesian water, natural mineral and spring water, from an underground water table or deposit and emerging from a spring tapped at one or more natural or bore exits, for sale for human consumption.

“The water resource tax is payable by any business extracting water in its natural state for the purpose of bottling or packaging for sale; and the volume of water extracted shall be measured by an approved metre on a monthly basis,” the government gazette stated.

It stated that the accountable person, in this case the owner, manager or director of the company, must within 14 working days pay the Comptroller any water resource tax that had been payable the previous month.

And necessary information like the monthly volume of extraction, monthly volume of all extracted water lost in that factory by evaporating or leakages, and monthly production figures for finished product, must accompany payments.

“If water resource tax is not paid in accordance with subsection (1), the accountable person is liable to a penalty at a rate of 10 per cent of the unpaid water resource tax in addition to the water resource tax.

“And if the default continues, an additional 2.5 per cent penalty per month of default shall be added to the 10 per cent penalty if the default continues for more than one month after the due date for payment,” the gazette stated.

For the recovery of water resource tax, the correct amount of water resource tax due and payable under this promulgation may be demanded by the Comptroller within one year of the date when that water resource tax should have been paid.

“If a dispute arises as to the proper rate or amount of water resource tax, the person liable for the tax shall deposit with the Comptroller the water resource tax demanded and the amount so paid or received shall be deemed to be the proper water resource tax unless the Court of Review, upon application to it by that person within three months after that deposit or receipt.”