Government to reduce income tax to 25% for specific companies while increasing age and pension exemptions
Howard Walker / Our Today
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The Jamaican government would be reducing the income tax rate from 33 1/3 per cent to 25 per cent for specific companies while there will be an increase in age and pension exemptions, revealed Minister of Finance and Public Service Fayval Williams.
Williams was updating the media at the weekly Post Cabinet press briefing at Jamaica House Wednesday.
“This balanced approach underscores this government’s commitment to fostering economic growth, reducing inequity and building a more sustainable future,” said Williams.
The following measures were introduced as part of this fiscal year’s budget presentation by the minister that 25% income tax rate for companies providing trust and our corporate services that are not engaged in other activities even though these trust and corporate services companies are regulated entities.
“The income tax rate would be reduced from 33 and a third per cent to 25% and you will note that this government has been reducing taxes, not increasing them,” she pointed out.
“Additional budget measures that the amendments, that I took to parliament yesterday will codify into law are the increases in the age and the pension exemptions from $80,000 each to $250,040 each. It will also codify the increase in the annual personal income tax threshold from $1,500,096 to $1,700,088, Minister Williams added.
William noted that with strong macroeconomic fundamentals, her government was able to introduce measures aimed at facilitating trade, reducing administrative inefficiencies and offsetting the loss in purchasing power to Jamaican citizens because of global inflationary pressure.
“Of significance, this administration has been able to create some fiscal space as a result of the progress that this government has made in improving the general macroeconomic conditions and reducing the country’s debt.
With the increase in the income tax threshold taking effect last year, Williams noted that this gave rise to an effective annual threshold and that individuals, who receive a pension and are over age 65 would be entitled to both pension and age exemptions as well as the benefit from the increased income tax threshold.
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