Support is coming from sections of the private sector for what our news center understands to be the Government’s intention to implement its plan to raise the income tax threshold to $1.5-million in two phases
Finance Minister Audley Shaw is to indicate how the Government intends to finance the $580-billion budget just after 2:00 tomorrow afternoon.
Private Sector Organization of Jamaica CEO, Dennis Chung says using two phases to put in place the tax break plan for persons who earn $1.5-million or less would be a wise move.
Mr. Chung says he’s contemplating the issue from the perspective of what is fiscally prudent.
Nationwide News disclosed this morning that the Holness-administration is expected to announce a two phased approach to the tax break plan.
Our sources say Finance Minister Shaw will announce tomorrow that the income tax threshold will be increased to $1-million across the board effective July 1 this year.
It’s also understood that the Finance Minister will further announce that effective April 1 next fiscal year all persons earning $1.5-million or less will not pay income tax.
Dennis Chung says based on the available fiscal space this would be the only possible way to implement the tax break.
In the meantime, Jamaica Manufacturers’ Association boss Metry Seaga says a phased approach may generate some disappointment but its important to strike a balance between increasing the purchasing power of Jamaicans and at the same time meet fiscal targets.
Our sources say Mr. Shaw will announce an increase in the special consumption tax on fuel by $7 per litre to fund the income tax break initiative.
Shaw will also reportedly announce a special tax on the importation of Liquefied Natural Gas, LNG to Jamaica.
The departure tax is also set to be increased. An increase in the Special Consumption Tax on cigarettes is also expected.