Jamaicans will be paying less income tax from next year.
The Senate has passed the Income Tax (Amendment) Act, 2015, that will facilitate the provision of an additional J$35,568 (US$305) in tax-free income for workers, effective January 1, 2016.
The Bill, which was passed with four amendments, provides for an increase in the personal income tax threshold and will make the first J$592,800 (US$5,085) of each Jamaican’s annual income, tax-free. The threshold was previously J$557,232 (US$4,776).
The latest proposed adjustment, on coming into effect, will translate into a cumulative increase of $85,488 (US$732) in tax-free income facilitated over the past two years, with the personal income tax threshold having stood at J$507,312 (US$4,347), at the start of that period.
“These increases in the income tax threshold for individuals have been introduced in recognition of the social impact occasioned by the economic adjustments, as a result of the economic reform efforts,” said Justice Minister Senator Mark Golding, who led the debate on the Bill in the Upper House.
“They will increase the disposable income of employees and compliant self-employed individuals and, thereby, also provide additional stimulus to the domestic economy.”
Golding pointed out that the Bill also seeks to formalize the introduction of the revised income tax threshold for the 2015 assessment year, which made the first J$557,232 (US$4,776) of annual income earned, as at January 1, tax-free.