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The Fiji Islands Trade and Investment Bureau (FTIB) is setting up its office in the northern town of Labasa as it moves to establish a tax free region on Vanua Levu, as announced in the 2009 budget.
FTIB chief executive Annie Rogers confirmed the FTIB office would be opened next month to be operated by three staff.
She said work was currently underway with facilities being put into place.
She said the establishment of the office was required as Government now looked north for the establishment of tax free regions (TFR).
“The tax free region in the north is in the industry that you basically start up in the north and gives you certain incentives,” Rogers said.
She added three Melanesian Spearhead Group (MSG) member countries – Solomon Islands, Papua New Guinea (PNG) and Vanuatu are being targeted to have the tax free region (TFR) concept implemented there.
The economically depressed northern region had been declared tax free zones to encourage investment that was announced in the 2009 budget.
Vanua Levu had been identified along with maritime regions including Rotuma, Kadavu, Taveuni, Levuka, Lomaiviti, Kioa, Rabi and Lau as tax free regions.
The TFR was made effective from January 1 this year.
“TFR incentives will include 13 years tax holidays for new companies and import duty exemption on raw materials, machineries and equipment for initial set up,” interim Prime Minister Voreqe Bainimarama had announced.
Other incentives included companies that started new projects with at least 25 per cent equity participation involving indigenous Fijians would be granted an additional five years tax holiday, that is, a total tax free status of 18 years.
“Such incentives shall be proved to new companies investigating at least $2 million,” he had said.
