From January 1, 2025, Fiji’s Fringe Benefit Tax (FBT) will apply to electric vehicles (EVs), prompting concerns from the private sector about its potential impact on clean energy initiatives.
Deputy Prime Minister and Finance Minister Biman Prasad defended the policy, stating, “Tax policies evolve. The government is keenly aware of our role in mitigation, but for Fiji, the overwhelming priority has always been adaptation. We’re not the polluters… Fiji and the Pacific contribute a very, very minute percentage of global emissions.”
Under the policy, companies face up to $16,000 annually in FBT for EVs costing under $60,000, and over $20,000 for pricier models.
Textile merchant Mark Halabe criticized the move, saying, “If your company wanted to buy you a company car, they would think twice about giving you an EV because of that constraint.”
Mr. Prasad ruled out immediate reviews, emphasizing Fiji’s broader renewable energy efforts.