FIJIANS earning below $16,000 should expect more take home pay from January next year after the government increased the tax threshold from $15,600.
This means the tax threshold has almost doubled in the five years since 2007 when it was $8840.
Prime Minister Commodore Voreqe Bainimarama announced another major initiative — simplifying the way people paid tax.
"In future, Pay as You Earn (PAYE) taxpayers will not have to file a tax return at the end of the year," he said.
"What their employers extract will be their sole obligation.
"But by shifting to this method, we are also ending the system of claimable tax allowances."
Commodore Bainimarama said any losses for individual taxpayers would be more than offset by the generous tax cuts the government announced last year.