Dependent tax rebate will not be implemented till next parliament sitting: PM Marape
During the passage of the 2024 National Budget by Parliament in November last year, the law governing income tax was amended, removing dependent income tax- a tax rebate which is claimed by income taxpayers.
But to date, it has not been implemented by the Internal Revenue Commission [IRC] following directive from the executive government, after public servants pay cut in the first pay cheque of this year, which resulted in lawlessness in the nation’s capital on 10th January.
The pay cut was restored in the second pay period following adjustments to the new income tax free threshold of K20, 000.
Today in Parliament, in its final sitting for February, Oro Provincial Member Gary Juffa wanted confirmation from Prime Minister James Marape, as the country’s Treasurer, if removal of the dependent tax rebate will be implemented.
“Dependent rebate allows tax payers earning an income through formal employment to claim rebates for up to three dependents, their children, spouse, parents or other dependents they taking care to as their children.
“This rebate range from K60 to K300 [estimated] per fortnight, helps family in this difficult times,” Mr Juffa asked.
In response to the series of questions, the prime minister, who took over the Treasurer’s portfolio following the January 10 mayhem, said the National Executive Council decision had not changed.
“Cabinet had decided to take a review in this [earlier] decision, in terms of allowing the rebate to be removed [and] in next sitting of Parliament will make those corrections,” Mr Marape said.
Parliament adjourned to 28th May.
He further said there is an “instruction out to [Department of] Treasury and IRC to remove the bill from the budget documents, and in the next sitting of parliament, appropriate corrective measures will be taken.”