Civil service association disappointed with no increase in income tax threshold

The Jamaica Civil Service Association (JCSA) says it is deeply disappointed that the Government has not increased the income tax threshold.

In opening the Budget Debate in the House of Representatives yesterday, Minister of Finance and the Public Service Dr Nigel Clarke stated that given recent changes in public sector compensation, which added $120 billion to the wage bill, now is not the time for an adjustment to the income tax threshold.

“It cannot be afforded at this time,” he stated.

The income tax threshold was last adjusted in 2017 when it was raised to $1.5 million.

The JCSA says it had been lobbying for an increase in the threshold as public sector workers, particularly those who receive a significant quantum of their compensation as a nontaxable allowance, have borne a significant increase in new taxes relative to the net increase in take-home pay over the three years of the implementation of the compensation restructuring.

The association, along with its sister unions in the Jamaica Confederation Trade Unions, were hopeful that their lobby for the increase in the tax threshold would have been successful this fiscal year.

They argued that such a move would send a strong signal by the Government to the labour market that with the reduction in unemployment and increase inflows from statutory payments including income taxes, this would have led to an adjustment for those who are now back in the income tax net or are now in the higher tax bracket.

“Notwithstanding our disappointment, we look forward with the hope that our lobby will eventually lead to an adjustment in the income tax threshold in the very near future,” said the JCSA in a media release.

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