The Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, has reiterated that the income tax threshold in Fiji will remain at $30,000, unchanged from the previous budget. This announcement is set to be officially made during the national budget presentation next Friday. Professor Prasad explained that the government opted not to decrease the threshold last year and will continue this trend, emphasizing the aim of protecting disposable income for lower-middle-income households and those currently employed.
This decision aligns with the government’s strategy to maintain stable tax policies during a time of economic recovery post-COVID-19. In previous discussions, Prasad has highlighted the low personal income tax rates in Fiji compared to other nations in the region, indicating that further changes were not anticipated as the population seeks to stabilize their financial situations in the aftermath of the pandemic.
Moreover, the government is directing its efforts towards enhancing tax compliance and educational initiatives rather than increasing tax rates. This strategy aims to broaden the tax base and create a more sustainable fiscal framework, as outlined in the 2024-2025 National Budget. By focusing on comprehensive tax compliance measures, the government hopes to improve revenues without imposing additional tax burdens on its citizens.
The continuity of the income tax threshold can be viewed as a positive step towards supporting families and facilitating stability in household finances. As the government gears up for the upcoming budget, its commitment to enhancing the financial well-being of its citizens reflects a proactive approach to economic management.
Overall, this announcement not only reassures citizens about their tax obligations but also showcases the government’s determination to maintain fiscal stability while addressing pressing economic challenges.
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