The RB Patel Group reported after-tax profit of $10.9 million for the year ended June 20, 2022, compared with profit of $8.5 million last year.
The company said in its financial statements published by the South Pacific Stock Exchange that the recovery from COVID-19 and improving levels of economic activity had given a boost to business confidence.
“Since the initial declaration of the pandemic in early 2020, Fiji and many countries, including Fiji’s major trading partners, have faced significant challenges.
“The initial impact of the pandemic was felt primarily in the tourism industry and a wider impact on many other businesses due to border closures and high levels of unemployment.
“This wave of the virus has had a serious impact on national economic activities due to restrictions on the movement of people and the prolonged closure of many businesses in Viti Levu, especially in the Lami containment area in Nausori and the closure continuous international borders.
“The easing of restrictions along with the opening of international borders at the end of 2021 has significantly improved Fiji’s trading conditions and economic prospects.”
The company said it would be subject to corporation tax at 20% from the 2023 tax year under the Income Tax (Rates and Levies) Regulations 2022 (amendment) (No. 2).
“This change in the corporate tax rate is expected to have a significant impact with an increase in deferred tax liabilities and a corresponding reduction in retained earnings.
“Based on preliminary calculations, the impact is estimated at around $3.5 million.”