Families on annual income salaries ranging from K20, 000 and below can expect to be excluded from paying income tax next year after the government moved to make permanent the Income- Free Threshold in the 2024 National Budget. The Treasurer, Ian Ling Stuckey said this should continue to assist low and middle- income families to be able to support themselves in light of the high cost of living currently experienced. “The Marape- Rosso Government will make permanent the increase in the tax- free threshold to K20, 000 at an estimated cost of K280 million,” said the Treasurer in his recent budget speech. “For workers earning K769 per fortnight or more, this will provide a fortnight savings of K63, which can be used to help with household purchase.” In the 2023 Budget, the tax- free threshold was increased from K12, 500 to K20, 000, mainly intended to provide relief to low and middle- income earners during times of inflation, as a temporary measure just for one year and will expire on the 31st of December, 2023. The Treasurer said that in the 2024 Budget, the government is making permanent the tax- free threshold and repealing the dependents rebate through the Income Tax (2024 Budget) (Amendment) Bill, so to maintain the purchasing power of money and reduce compliances cost and simplify administration. “Workers earning up to K20, 000 per annum no longer have to pay tax on their income. This will directly benefit over 37, 000 salary or wage tax payers by increase in their disposal income.” “The new tax – free threshold of K20, 000 removes 22% rate bracket and means that only those with an annual income exceeding K20, 000 will pay 30 toea for each Kina,” explained the Treasurer. This new measure will come into effect as of the 01st January 2024 and onwards.