Fijian Budget gives income tax reduction

Press, 12 November 1985, Page 25

Fijian Budget gives income tax reduction

NZPA staff correspondent Suva Workers in Fiji will pay less tax from January 1 and anyone leaving the country will pay a bigger departure tax.

These were among measures announced in the new Budget by the Minister for Finance, Mr Mosese Qionibaravi. The main points of the budget are: • Increased duty on beer, liquor, cigarettes and many other consumer goods. • More tax on fringe benefits and job perks. • The wage freeze will remain, for the time being anyway. • Airport departure tax will go up from $5 to $lO. Mr Qionibaravi said in his

?Fiji391,526,300 ($430,678,930) Budget that the level at which people began paying income tax would be raised from sFijilsoo ($1650) to sFiji2ooo ($2200). The reduction in tax will be on a graduated scale, ranging from 54 per cent to people paying tax on sFijilooo ($1100) to 6 per cent for people paying $40,000. This means that those at lower income brackets will get more than those at the

top. The Government will raise money by increasing duty or introducing taxes on many goods and services. These include: • Cigarettes will go up 50c a packet of 10 to 54 cents.

© Beer price will go up 3c a bottle.

0 Spirits will rise 2c a bottle.

® Methylated spirits will rise 2c a bottle. • Butter will cost 2c more.

The Government has also decided to set up a national youth training programme to help about 1500 schoolleavers next year. The Budget also exempts farmers from all normal tax, especially to help cane farmers who now pay a percentage. Motor-vehicle licence fees have been reduced 75 per cent for buses and 50 per cent for cars. Tax deduction now available for taxpayers making donations to approved charities is doubled.