Income tax threshold moved to $1.7 million – Clarke
Government has announced an increase in the income tax threshold from $1.5 million to $1.7 million effective April 1.
This will see the government giving up $9 billion in revenue as a result.
Minister of Finance and the Public Service, Dr Nigel Clarke made the announcement Tuesday as he opened the 2024/2025 Budget Debate at Gordon House.
This means PAYE workers will not pay income tax on the first $1.7 million that they earn.
Clarke indicated that the Government was not able to move the threshold higher at this time because it would be giving up too much revenue which could affect economic stability.
In a recent interview with Observer Online, economist Dr Damien King expressed his support for an increase in the income tax threshold to $2.2 million, which he said would restore the purchasing power of income earners to 2016 levels when the threshold had been increased to $1.5 million.
READ: Economist supports increasing income tax threshold to restore purchasing power
In the meantime, Clarke also said that for a seventh year, Jamaicans will face no new taxes.
