One Year In Government - Prime Minister Andrew Holness

25 / 44

• • gleanerjamaica • jamaicagleaner • FEATURE THE GLEANER, THURSDAY, MARCH 2, 2017 G3
THERE IS now extra money in the
hands of more than 250,000
Jamaicans who are benefiting
from the Government’s move to
increase the personal income-tax
threshold to $1.5 million.
Effective July 1, 2016, taxpayers,
including Pay As You Earn workers,
self-employed persons and pension-
ers, have seen an increase in their
annual personal income-tax thresh-
old to $1,000,272, up from
$592,800.
This was the first phase of the
income-tax break, which is
being implemented over two
years. The second phase takes
effect on April 1 this year,
which will result in an addition-
al increase of $499,824.
The effective threshold for the
2017 year of assessment will,
therefore, be $1,375,140. The full
threshold of $1,500,096 will
become effective on January 1,
2018.
Whether the funds have gone
towards savings, the purchase of items
or a home, or just to keep up with the
bills, beneficiaries have been heeding the
advice of Prime Minister Andrew Holness
and have been happy for the increase.
BETTER RETIREMENT PLAN
For 54-year-old accounting officer at
e-Gov Jamaica Limited, Sydonnia Hylton, the
tax break has afforded her the opportunity to
better plan for her retirement. Wisely, Hylton
has put the funds towards her monthly voluntary
pension contribution.
Hylton, who has three adult children, felt it was
best to invest in her future rather than “squander”
the money, noting that she “wanted it to go to some-
thing that I can see down the road”.
She explains that with the increase in the income-tax
threshold, she is taking home about $8,000 more per
month.
Hylton said the tax relief was a good move by the
Government to assist hard-working, deserving Jamaicans,
adding that she was “looking forward to the additional
amount come April”.
According to Tax Administration Jamaica, the threshold of
$1,000,272 resulted in an effective threshold of $796,536 for
the year of assessment 2016.
This means that individuals who earn more than $592,800
but less than $796,536, from which income tax was deducted
before December 31, 2016, were entitled to a refund from their
employers. Persons earning $796,536 or less no longer pay
income tax.
Speaking on the new income-tax arrangement last year,
Minister of Finance and the Public Service Audley Shaw noted
that “$26.6 billion is being put back into the hands of people.
“Everybody is, ultimately, going to benefit ... even those who
don’t directly get money by way of a payback because they are
below the threshold,” he stressed.
SHAW
More income
for quarter
million
J’cans
THRESHOLD
MOVEMENT
INCREASES
NET SALARY
Everybody is, ultimately,
going to benefit ... even those who
don’t directly get money by way of a
payback because they are below the
threshold. “ ”