The government in its budget for the 2017/18 financial year announced that it is raising the tax free threshold from $12,000 to $15,000.
Finance Minister Sili Epa Tuioti told Parliament yesterday that it would mean 14,199 workers in formal employment would not be required to pay income tax.
Salary levels between $15,001 and $25,000 will be taxed at 20 percent and over $27,000 at 27 percent.
Minister Sili Epa said businesses that export goods and services (excluding re-exports) get a tax deduction equal to 50 percent of the profits made on those exports.
