Praneeta Prakash 
The Ministry of Finance today addressed concerns regarding a temporary increase in income tax deductions experienced by some civil servants following recent salary adjustments.
The Ministry clarified that Fiji’s progressive income tax system ensures higher earners contribute a greater tax share.
It says individuals exceeding an annual income of $30,000 are liable for income tax.
The Ministry says that following the salary increments, some civil servants might have noticed a one-time rise in tax deductions on their first paycheck after the raise.
However, the Ministry assures that subsequent paychecks will reflect a lower tax deduction amount.
The Ministry emphasizes that the payroll system automatically adjusts tax deductions throughout the year to ensure each individual contributes the correct amount of tax based on their annual salary and the current Pay As You Earn tax schedule.
The Finance Ministry says they want to assure all civil servants that this is entirely consistent with standard PAYE calculations established by the Fiji Revenue and Customs Service.
