Government proposes various tax amendments

The National Government through its massive 28-billion-kina National budget for 2025 introduced today in parliament, is also proposing several amendments to various income tax laws.

Among these are the proposed exemptions to superannuation withdrawals for retirees, removal of the 22 percent tax bracket on salary and wage earners and reducing company tax on all commercial banks.

Treasurer Ian Ling-Stuckey brought these consequential amendments to the Income tax Appropriation bill, when presenting next year’s money plan to the House this afternoon.

The national government’s proposed 28-billion kina security focused budget for the new year is also looking to right the wrongs made through several earlier amendments.

Mr Ling-Stuckey says the Government will maintain the 20-thousand-kina tax free threshold, while removing the 22 percent tax bracket on salary and wage earners.

Tax exemptions will be applied for superannuation withdrawal by retirees who have worked for over 15 years.

Government to reduce bank tax

The National Government is also proposing a reduction to tax rates on all commercial banks, whose profits are below K300 million.

Treasurer Ian Ling-Stuckey when presenting accompanying amendments to the 2025 National Budget, highlighted that banks whose profits are below K300 million will see a tax reduction rate from 45 percent to 40 percent.

The government earlier passed tax laws that saw bank tax rates increase from 30 percent to 45 percent in 2023.

Mr. Ling-Stuckey added that company tax rates for all commercial banks whose profits are above K300 million kina will see a reduction of 45 percent to 44 percent and it will be further reduced annually until it reaches 35 percent.