Agriculture Industry

Overview

Sugar production remains the most important agribusiness in Fiji, contributing approximately 1.09% of total GDP, 7.7% of total domestic exports, and employing around, 100,000 people. Other major contributors to exports in agriculture are fruits and vegetables, including taro, ginger, cassava and papaya.

Taro exports have significantly increased by $5.1 million (21.4%) between 2004 and 2010. A small but growing volume of certified organic products, including coconut and fruit products is exported. However, growth in the sector has been variable.


Tax Incentives

• This incentive is available to a newly incorporated entity engaged in a new trade, business or manufacture established in Vanua Levu, Rotuma, Kadavu, Lomaiviti and Lau.

(i) The income of any new activity approved and established between 1 January 2010 to 31 December 2014 shall be exempt from tax as follows:
– capital investment from $250,000 to $1,000,000, for a period 5 consecutive fiscal years; or
– capital investment from $1,000,000 to $2,000,000, for a period of 7 consecutive fiscal years; or
– capital investment above $2,000,000 for a period of 13 consecutive fiscal years.

(ii) The income of any new activity approved and established from 1st January 2015 shall be exempt from tax for a period of 13 consecutive fiscal years with an initial capital investment of $2,000,000 or more.

(iii) Import duty exemption on the importation of raw materials, machinery and equipment (including parts and materials) insofar as they are required for the establishment of the business in the Tax Free Region.
Other benefits under TFR;
Additional 5 years of income tax exemption is available to any company granted a license and having indigenous Fijian landowner equity of at least 25 percent.

Additional 7 years of income tax exemption is available to any hotel developer granted a license and having indigenous Fijian landowner equity of at least 25 percent

Commercial Agriculture & Agro-processing Incentives:

• The income of any new activity in commercial agricultural farming and agro-processing approved and established from 1 January 2010 to 31 December 2014 shall be exempt from tax for 10 consecutive fiscal years with a capital investment of $2,000,000 or more.

Bio-fuel production Incentives:

 

10 year tax holiday is available to a taxpayer undertaking a new activity in processing agricultural commodities into bio-fuels as approved by the Commissioner from 1 January 2009 to 31 December 2014.








Other Incentives:

• Carry forward of losses is available for 4 years.
• Corporate tax rate is 20%
• Accelerated Depreciation extended to 2014
• Agriculture inputs duty reduced to 0%.
• Agriculture & Dairy - Duty free concession on all specialised agricultural machinery and equipment and other agriculture-related inputs.

Incentives for small and micro enterprises:

• Income tax exemption to be applicable to selected sectors with maximum turnover threshold of $300,000 (Sugarcane Farmers; Coconuts; Rice; Ginger; Yaqona; Fishing; Raising Livestock; Vegetable; dalo, cassava and other root crops production; farming and Bee keeping).

Business Opportunities

Potential for Fiji found in the production and export of high value niche agricultural produce.

This development provides lucrative opportunities to investors and stakeholders.
.
The pristine environment in which agricultural production takes place, supported by other environmental and ecological factors, supports the supply of organic produce. This is a major development in the fresh food market worldwide. This development provides lucrative opportunities to investors and stakeholders.

Potential commodities for value added processing include pawpaw (jam & juice), tomatoes (tomato juice and canning of peeled tomatoes), pineapple (juice and fruit canning), coconut products (cream, timber and speciality oil), duruka, mixed vegetables, guava (jam), mango (jam and juice) and kava products. Potential also exists for value added processing of taro, cassava, breadfruit and banana chips for the local and export markets.

A big local market also exists for these products.

Various methods of preserving fruits and vegetables can be explored, such as canning, refrigeration, drying, pickling, sugar preservation, etc.

Potential also exists in the Livestock Sector for:
• Animal Feed Supply, using local resources from existing industries.
• Dairy Farming
• Production and supply of organic farm inputs