Bold tax move to help the poor

Acting Finance Minister FILIPE BOLE making the announcement at a press conference today Taken from / By: Fiji Broadcasting Corporation

In an unprecedented taxation measure that has received mixed reactions from economists and unions - the interim government has increased the income tax threshold from $9,000 to $15,000.

The announcement described by economist Dr Biman Prasad as a bold move was made this afternoon by acting Finance Minister Filipe Bole.

Bole says the decision is part of government’s efforts to mitigate the effects of rising food prices on low income earners.

The duty rate on selected basic food items will also be reduced to a new rate of zero per cent. Bole says the decision is in response to concerns raised by workers’ representatives and civil society leaders, and farmers’ leaders.

“This latest decision of an increase in the income threshold from $9,000 to $15,000 – coupled with zero duty for basic food items would mean a direct positive impact on low income earners who have been aversely affected with the rise in food prices.”

Food items to have zero duty include white rice – brown rice – tinned fish and crude oil.

The changes come into effect from June 1.

Fiji Broadcasting Corporation

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