Effective April 1, 2017, the personal income tax threshold will be increased from $1 million to $1.5 million.
Minister of Finance and the Public Service, Hon. Audley Shaw, made the announcement as he opened the 2017/18 Budget Debate in the House of Representatives on March 9.
Mr. Shaw said currently, there are 469,131 Jamaicans who are on the Pay As You Earn (PAYE) tax roll.
“Under this $1.5-million threshold that this government has instituted, 397,083 persons, almost 400,000 persons of that entire PAYE cohort of taxpayers, will now be exempt from paying taxes, because they are now completely below the $1.5-million tax threshold,” Mr. Shaw said.
“This was a promise we made and we are proud to deliver on our promise. We are proud of that fact, as this reform is aimed at addressing the high tax burden on PAYE workers,” he added.
Effective July 1, 2016, the first phase of the personal income tax threshold was increased from $592,800 to $1,000,272.
The second phase, which takes effect April 1, 2017, will see the threshold moving to $1,500,096. This adjustment will result in an additional increase of $499,824.
The effective threshold for the 2017 year of assessment will, therefore, be $1,375,140, and the full threshold of $1,500,096 will become effective on January 1, 2018.