THE Fiji Commerce and Employers Federation (FCEF) says measures in Fiji’s 2026-27 Budget aimed at relieving business cost pressures and strengthening skills development, will boost investment confidence.
Under the Budget businesses will receive relief through fuel duty exemptions for mining operations, manufacturers, and hotels not connected to the EFL grid.
Diesel duty concessions for bus operators, shipping, EFL, and eligible industries have been extended to October 31.
In a move to support employment and investment, the government has reduced employer Fiji National Provident Fund (FNFP) contributions from 10 per cent to 8 per cent effective August 1, 2026, through July 31, 2027. This measure is expected to deliver approximately $FJD100 million in savings to employers. Businesses contributing above the mandatory 8 per cent rate, up to 10 per cent, will qualify for a 150 per cent tax deduction on additional contributions.
Customs tariffs have been reduced across several sectors, including construction materials, food and catering supplies, and passenger transport vehicles.
When it comes to developing a skilled labour force, the budget increases the Training Grant Scheme allocation from 0.1 per cent to 0.5 per cent of the training levy, rising from $FJD2.5 million to approximately $FJD15 million. A 150 per cent investment allowance has been introduced for businesses establishing training or technical centres, while tax deductions of 500 per cent for apprenticeship wages and 400 per cent for employing persons with disabilities have been extended.
Investment incentives include tax holidays for cement mill establishments, mahogany sawmills, and joint ventures with 30 per cent iTaukei shareholding in eco-tourism, culture, and arts. The budget also introduces tax incentives for peer-to-peer lending and equity crowdfunding platforms to ensure there are different avenues for accessing finance..
FCEF says that it will work with the government to ensure these measures translate into real economic benefits for businesses, workers, and communities across Fiji.
