Transcript: Pacific VAT Compliance: The Fiji Model

Interviewer: Mr. Udit, as Chief Executive Officer of the Fiji Revenue and Customs Authority, since the implementation of the VAT Monitoring System (VMS), what have been the most tangible improvements in tax compliance and revenue collection in Fiji?

Mr. Udit: The most tangible improvements have been a significant increase in VAT compliance. We've also seen higher levels of voluntary tax declarations and much better alignment between sales data and tax returns.

The VMS has reduced underreporting and improved transparency at the point of sale, leading to stronger revenue collection without increasing tax rates.

Interviewer: That's great. What were the biggest challenges during the rollout of the VMS, and how did you build trust and encourage adoption among businesses?

Mr. Udit: One of the biggest challenges was the initial resistance from businesses. We also faced technical capacity constraints, and there was a great deal of misinformation about the purpose of the system.

To address these challenges, we conducted extensive stakeholder consultations, offered in-house training, established a clear help desk and support model, and emphasized that the VMS was about fairness and transparency—not surveillance.

Interviewer: Fiji is often cited as a regional success story. What key lessons from your experience would you share with Papua New Guinea as they embark on the same journey?

Mr. Udit: We can now draw several clear lessons from our experience.

First, engage stakeholders early to build understanding and reduce resistance.

Second, invest in capacity building across both the tax authority and the private sector.

Third, ensure there is strong political commitment and solid legal backing. This is essential for maintaining compliance and sustaining implementation momentum.

There will inevitably be challenges along the way. When stakeholders raise concerns or approach political leaders, it's important that those leaders understand the long-term objective. The tax authority must continue working to resolve issues, simplify processes, and make compliance as easy as possible for businesses.

Interviewer: Looking ahead, how do you see the VMS contributing to Fiji's broader fiscal strategy and digital governance?

Mr. Udit: The VMS creates digital transparency, which is one of its most important benefits.

Since implementing the system—and with one more phase still to be rolled out—we've identified a significant number of taxpayers who were either not filing returns or not filing them correctly.

The system creates fairness by ensuring that everyone who is required to pay taxes does so, because we can identify non-compliance much more quickly.

This, in turn, encourages voluntary compliance. Taxpayers who are already meeting their obligations can see that the tax authority is working to create a fair and transparent system. Ultimately, the VMS supports a stronger culture of civic responsibility and taxpayer compliance.

Interviewer: Mr. Udit, thank you very much for placing your trust in DataTech International and for partnering with us on this implementation.

Mr. Udit: Thank you. We also want to thank DataTech International for supporting this initiative. Your team has consistently taken a proactive approach to addressing challenges, maintained close communication with our staff, and continuously provided practical solutions. We appreciate the partnership and look forward to continuing our work together.

Interviewer: Thank you.