11 Jul 2012

Personal income taxes stimulate consumption activity - Reserve Bank of Fiji

10:59 am on 11 July 2012

The Reserve Bank of Fiji says personal income taxes stimulated consumption activity for the month of June, which in turn attributed to an 18.7 percent annual growth in Valued Added Tax collections.

The Reserve Bank's June economic review issued this week, states that lending for consumption purposes rose by 88.4 percent in the year to May.

According to Fiji Times, the Bank says investment activity indicators suggested slow performance over the same period.

The review says on one hand, new lending for investment purposes was higher by around 22.8 million US dollars in the first five months, due to higher lending to real estate and building and construction sectors.

It says on the other hand, domestic cement sales declined annually by 2.2 per cent, suggesting weak activity in the construction sector.