New tax rate soon

Press, Volume CX, Issue 32462, 24 November 1970, Page 16

New tax rate soon

The new rate of income tax, including the surcharge of 10 per cent, will begin with the first pay period starting on or after December 1, the District Commissioner of Taxes (Mr C. K. Jones) said yesterday. Under the new rates of taxation a single taxpayer earning $4O a week will pay $6.28 compared with $5.71 now. A married man earning $4O a week will pay $5.13 compared with $4.67. A single taxpayer earning $5O a week will pay $9.18 compared with $8.35 but a married man on the same income will pay $7.58 instead of $7.08. Mr Jones said that new weekly tax tables had been issued to employers for use

from December 1. They included the additional 10 per cent payable on current tax deductions. He pointed out variations between rates for single people and married taxpayers. Tax deductions in the new table for single persons will be increased a full 10 per cent over the previous rates but those for married taxpayers will be slightly less than 10 per cent because of the higher exemption for a dependent wife (now $275) which applied from April 1, 1970. Mr Jones said there seemed to be some confusion about the use of the tables just issued and employers should make sure that they were used for pay periods starting on or after December 1. If a weekly pay period ended on December 3 the first deduction at the new rate would be on December 10. For a fortnightly pay period ending on December 10 the first new scale would apply for the period up to December 24. For a three-weekly pay period ending on Decern-

■ ber 17 the new scale would • apply on January 7, 1971. : For a four-weekly pay t period ending on December r 18 the new scale would apply 1 on the January 15 pay day. For a monthly pay period r ending on November 30 the I increase would apply in the r period ending December 31 i and for the monthly period - ending on December 15 the s new rate would apply on f January 15, 1971. * For secondary employment ) earnings, tables would apply • to all payments made for any period starting on or after J December 1 and ending on t July 31, 1971, or any earlier t date. ' For payments like back e pay, annual or special * bonuses and lump sum payments to retiring employees i the tables would apply for t those made .on or after s December 1 and on or before i. July 31, 1971. i Mr Jones said the new a tables would be issued later f to apply for the periods from - April 1, 1971, to July 31, f 1971, and from August 1, -1971. to March 31, 1972.