Economy | TAX REFORM
Remove PAYE tax for everyone who earns a basic salary of JA $1.5m or less.
Thursday March 9, 2017 |
Gov't delivers on $1.5-m income tax threshold promise
The government today delivered on its promise to grant a further increase in the personal income tax wage threshold, up to $1.5 million per annum.
Minister of Finance and Planning, Audley Shaw, said that the raised threshold will mean increased disposable income for approximately 200,000 taxpayers, out of a tax population of 469,000
Tax break for all - No PAYE worker to be excluded from $1.5 million relief plan - Shaw
Minister of Finance and Public Service Audley Shaw yesterday unveiled a modified version of the Jamaica Labour Party's (JLP) campaign promise of a $1.5-million income tax break, which will now apply to PAYE earners across the board.
"We are extremely pleased that one of the first and very important measures this new Government has now enacted is to grant tax relief to hard working Jamaicans," Shaw declared as he opened the Budget Debate in the House of Representatives.
The finance minister told the House that, instead of immediately as promised on the campaign trail, the income tax threshold would be increased to $1.5 million over two financial years and now embrace more than 100,000 persons who were not initially captured in the plan
UPDATE: $1.5m income tax break could be delayed
Minister of Finance and the Public Service, Audley Shaw, says that several challenges have been encountered, which may cause a delay in the actual implementation of the plan to increase the income tax threshold to $1.5 million, in the next fiscal year.
The finance minister, however, assured that the administration was assessing a number of options to ensure that it is put in place.
“It is firm and irrevocable and my commitment is that even if it doesn’t start April 1, because of the budgetary process, it will at least be retroactive to April,” he said, reminding that the pay cycle for PAYE employees is at the end of the month.
Income tax threshold increase only a start, says Shaw
Minister of Finance and Public Service, Audley Shaw, says the plan to increase the income tax threshold to $1.5 million in the upcoming financial year is only a start.
He says the Government is also committed to providing tax relief for persons earning more.
Shaw was addressing staff at the offices of the Ministry of Finance and Public Service, at Heroes Circle, in Kingston, yesterday.