Seventh Consecutive Year of No New Taxes

No new taxes will be introduced to finance the Government’s $1.3-trillion Budget for the upcoming fiscal year.

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, who opened the 2024/25 Budget Debate in the House of Representatives on Tuesday (March 12), said it is the seventh consecutive year in which the Government has introduced no new taxes.

He announced income tax breaks and measures aimed at protecting, preserving, and strengthening the country’s macroeconomic stability.

These include an increase in the personal income tax threshold from $1.5 million to $1.7 million, which will take effect in April.

There will also be a reverse tax credit of $20,000 for all Jamaicans who earn under $3 million, which is to be implemented this year.

Also announced was an increase in tax exemption benefits for pensioners, which will result in an additional 2,046 persons falling outside of the tax net and provide more disposable income to individuals in receipt of a pension.

In the meantime, effective April 2024, the de minimis value for imported goods will be increased from US$50 to US$100, which will facilitate access to a wider variety of goods to local consumers.

“It will also facilitate more activity in the local economy by way of intermediaries and shipping companies eager to capitalise on the increased activity,” Dr. Clarke said.

Also, effective April 2024, the duty-free threshold for personal/household effects will be increased from US$500 to US$1,000.

The Government will also be amending the Income Tax Act to increase the maximum participating voting share capital of companies listed on the Junior Exchange from $500 million to $750 million; facilitate further investments in renewable energy; and clarify that trust and corporate services providers will continue to be assessed Corporate Income Tax at the rate of 25 per cent.