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Stamp duty change
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05 February 2013

The Fiji Development Bank has reviewed its discharge fees for its Social Banking Facility (SBF) in response to changes in stamp duty charges announced in the 2013 budget by Prime Minister Frank Bainimarama in November last year.  

The SBF was in effect from July 2008 to December 2009. It allowed people earning less than $7,500 per annum to borrow at subsidised rates of interest with low or no security for the purposes of starting a business to improve livelihoods.
Under the SBF, $3MM was provisioned for two facilities – the Micro Credit Scheme and the Agri-Finance Scheme. The bank continues to provide business loans to low income earners but under normal lending conditions.
 “The Social Banking facility was designed to assist the below average earner to access affordable financing with low security requirements so they could generate an income with the view to improving their livelihood in the long term,” says FDB’s Chief Executive Officer, Mr. Deve Toganivalu.
Since its conclusion, the Bank continues to retain a number of SBF clients on its books which it manages with close monitoring and supervision.
In August last year, the Board approved the a waiver on the charging of the standard discharge fee for loans given under this facility and in its place a standard flat fee of $20 would apply to cover all discharge fees irrespective of the number of securities held, as a service to low income earners.
In light of the new stamp duty requirement, the $20 flat fee is now revised upward to $30. This came into effect on 30 January, 2013.
As a result of the new policy, the Insurance Council of Fiji under the directive of Fiji Revenue and Customs Authority has reviewed stamp duty charges for general insurance and the changes are as follows with effect from 1 February, 2013.

#
CLASS OF INSURANCE
NEW STAMP
DUTY
 
CURRENT STAMP DUTY
EFFECTIVE 1st Jan to 31st Jan 2013
OLD STAMP DUTY
1
Commercial Fire or Material Damage or Combined Commercial Package
15% of Base Premium
0.18% of Sum Insured
.06% of Sum Insured
2
House owners & Householders Insurance
15% of Base Premium
0.18% of Sum Insured
.06% of Sum Insured
5
Public Liability
15% of Base Premium
0%
0%
6
Personal Accident
15% of Base Premium
0%
0%
7
Travel Insurance
15% of Base Premium
0%
0%
8
Fidelity Guarantee
15% of Base Premium
0%
0%
3
Motor Vehicle
Private & Commercial & Fleet Insurance
5% of Base Premium
0.18% of Sum Insured
.06% of Sum Insured
4
Marine Insurance
10% of Base Premium
0.18% of Sum Insured
.06% of Sum Insured

The above is applicable for all insurance except for exempted classes (comprehensive third party, workers compensation and medical), which will now be charged on the company premium.

Stamp duty is now also applicable to insurance classes such as public liability, personal accident, travel and fidelity guarantee.
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