Another 1852 employees will no longer be paying income tax, saving them up to $300 per annum each.
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.
“This effectively halves the tax otherwise payable on those profits. The deduction would only be permitted where the CEO MfR is satisfied that the export sale proceeds will be remitted back to Samoa,” he added.
Minister Sili Epa said the government is of the belief that the two offsetting measures will trigger economic activity which in turn raise commercial activity and eventually raise tax collection.