Economy

AG: More taxes for the rich since 2006

The changes to Fiji’s tax rates since 2006 ensure that the wealthy have to pay more than 20% in addition to the normal income tax. The Attorney-General and Minister for Economy, Aiyaz Sayed-Khaiyum, was responding to claims made by a participant at Monday’s Speaker’s debate that Fiji’s tax and tariff rate had increased to 200% since 2006. Mr Sayed-Khaiyum […]

Salote Qalubau

August 5, 2016 8:31 am

The changes to Fiji’s tax rates since 2006 ensure that the wealthy have to pay more than 20% in addition to the normal income tax.

aiyaz-saiyed-khaiyum-parliament
The Attorney-General and Minister for Economy Aiyaz-Sayed-Khaiyum. (Newswire)

The Attorney-General and Minister for Economy, Aiyaz Sayed-Khaiyum, was responding to claims made by a participant at Monday’s Speaker’s debate that Fiji’s tax and tariff rate had increased to 200% since 2006.

Mr Sayed-Khaiyum said he was amazed that such a claim had been made.

SAYED-KHAIYUM: “In Fiji at the end of 2006 anybody that was earning more than $8,600 had to start paying tax and the tax rate started at 15 percent then 22 percent and now 30 percent.  When the tax reform took place about three years ago, we increased the revenue threshold from $8,800 to  $16,000 which meant that anybody earning up to $16,000 did not pay any taxes.”

“Everybody that received $16,000 took the entire amount home,  whereas before as soon as you earn more than $8,600, you had to start paying tax, that’s a fact.”

Mr Sayed-Khaiyum said the tax rate initially started at 7% for those who earned more than $16,000, with the maximum tax rate being 30% but now those that make more than $270,000  will have to pay a social responsibility levy.

SAYED-KHAIYUM: “In other words, the tax bracket has been changed to say that those people who are at the wealthy end need to pay more than 20% of the maximum tax.”

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