THE Commissioner General of the Internal Revenue Commission, Sam Koim, has clarified that a technical glitch in the Alesco payroll configurations led to unexpected deductions.
In response to this issue, he assured the public that the Department of Finance, Department of Personnel Management, and the Internal Revenue Commission are actively working to issue a joint statement promptly and rectify the situation.
Emphasizing the absence of any new tax increases by the Government, the Commissioner General reiterated the maintenance of the tax-free threshold at K20,000.
He explained that individuals earning K20,000 and below remain exempt from tax, while those earning above this threshold are subject to a calculated approach.
“For instance, if an annual salary is K33,000, the first K20,000 is either exempt from tax or taxed at 0%, while the remaining K13,000 is taxed at 30%. This results in an annual tax of K3,900 instead of K9,900, showcasing the government’s commitment to providing relief through a higher threshold and substantial savings of K6,000 annually,” he said.
Prime Minister James Marape reiterated the government’s stance on tax, emphasizing that there have been no new tax increases.
He highlighted the continuous efforts to provide relief to wage earners since the onset of the Covid-19 pandemic.
Addressing concerns raised by security personnel regarding taxes, Marape assured that actions are being taken to investigate the source of deductions.
He informed that instructions have been issued to the finance department to rectify the issue promptly.
Marape assured genuine police officers that their concerns are acknowledged, and advice will be provided later in the day.
He emphasized the government’s commitment to finding solutions for every issue or problem.
