Not good enough, Golding tells gov't in critique of income tax threshold increase
Published:Tuesday | March 19, 2024 | 3:19 PM
Opposition Leader Mark Golding has criticised the Government's increase in the income tax threshold from $1.5 million to $1.7 million arguing that this translate to a "mere" $4,000 increase in monthly salaries.
Making his contribution to the 2024/25 Budget Debate in the House of Representatives Tuesday afternoon, Golding said that this was a departure from what was suggested by Prime Minister Andrew Holness of a 2.0 version of the $1.5 million threshold.
READ: Holness promises version 2.0 of $1.5 million income tax threshold
Last September, Golding called for an increase in the threshold to $3 million, noting that this would restore the real value of the $1.5 million threshold implemented in 2017.
He said that this would provide some buffer for future inflation.
“The fact is that, since 2016, accumulated inflation is over 46 per cent in Jamaica, and an increase is required to restore the real value of the threshold that was last reset in 2016. After the prime minister's grand election pronouncement of a 1.5 2.0, persons are understandably very disappointed that the [finance] minister has announced an increase of the threshold to only $1.7 million,” said Golding.
He said what Jamaicans expected to be two million ended up being 0.2 million.
“This translates to a mere $4,166 more per month in their take-home pay. If the minister had, as phase one of restoring the value of the $1.5, even increased the threshold to $2 million, that would give persons an additional $125,000 per year [or] $10,400 per month in their take-home pay,” said Golding.
He said that this would be a much more meaningful benefit.
The opposition leader said this could be paid for using the $11.4 billion that has been allocated to the one-time $20,000 reverse tax credit announced by Finance Minister Dr Nigel Clarke last week Tuesday.
READ: Personal income tax threshold to increase to $1.7 million
Golding said in getting to $3 million, as tax inflows continue to grow, the threshold can again be adjusted as phase two.
- Kimone Francis
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