No increase in personal income tax rate, says Daton

Internal Revenue Commissioner Dr Alois Daton says that there is no increase in personal income tax rates.
He said what the Deputy Prime Minister and Treasurer Charles Abel said was true and there was no increase in tax.
Daton said there has been misinformation spread through various media outlets and social media that there was an increase in personal income tax.
“The rate of tax does not mean there is an increase for salary and wage earners,” he said.
“It’s only the tax threshold that has gone up.
“The tax-free threshold has gone up from K10,000 to K12,500.
“So people who have been in that bracket (K10,000-K12,500) last year don’t get to pay any tax at all in 2019.
“That’s’ what it’s all about.
“That’s not the only group of people who don’t pay tax at all.
“There’s also a reduction in the percentage bracket as well.
“This change also affects the tax bands in the 22 per cent and 30 per cent tax bands.”
Daton said in 2010, the minimum tax threshold was moved from K6400 to K7000.
“A further increase was done in 2012 to K10,000,” he said.
“In 2019, there is further increase to K12,500.
“There is no change to the tax rates.”