Personal income tax threshold to increase to $1.7 million
Published:Tuesday | March 12, 2024 | 2:03 PM
The personal income tax will be increased to $1.7 million from $1.5 million, Finance Minister Dr Nigel Clarke has announced.
It will cost the Government $9 billion and will take effect in April.
In opening the 2024/25 Budget Debate in the House of Representatives on Tuesday, Clarke said it would have cost the Government $23.6 million to move the threshold to $2.1 million.
Clarke also said it would cost 34.6 billion to raise the threshold to $2.5 million and over $45 billion to move it to $3 million.
Meanwhile, Clarke also announced a reverse tax credit for all Jamaicans who earn under $3 million, which is to be implemented this year.
"What does this mean? The reverse tax credit means that for every registered taxpayer who earns under J$3 million, the Government will provide a tax refund of $20,000 this fiscal year," Clarke explained.
He added, "We have a total of 570,000 Jamaicans today who contribute to the Jamaican society through statutory deductions, and some through personal income tax who will benefit from this measure. The cost of the programme will be $11.4 billion."
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