GOVERNMENT should not be taxing teachers’ location allowances, which are already insufficient to meet the needs of those serving in rural and remote areas.
This concern was raised at the Fijian Teachers’ Association (FTA) Annual Delegates Conference yesterday, where the association general secretary, Paula Manumanunitoga, described the taxation policy as unfair and burdensome.
“We regard this as a huge mistake by the Ministry of Finance,” Mr Manumanunitoga said.
“These are allowances which are not even $1000, yet they are subjected to tax deductions.
“Even some teachers earning between $16,000 to $30,000 per year are still seeing these deductions.”
Under Section 15 of the Income Tax Act 2015, all allowances, including the Rural Location Allowance, are considered taxable employment income. This means that teachers earning above the $30,000 threshold pay PAYE tax on these allowances.
In addition, contributions to the Fiji National Provident Fund (FNPF) are mandatory on the total “wages payable,” which includes allowances.
As a result, even teachers earning below the income tax threshold still face deductions from their location allowances.
Mr Manumanunitoga said the allowances were already insufficient and the delays in payments compounded the issue.
The FTA called on the Government to review the level of location allowances and their taxation, saying teachers working in hardship areas deserve greater support.