October 5, 2020

Government Removes Income Tax For Anyone Earning Less Than $84K A Year

By Newsroom

Persons earning a monthly salary of $7000 and under, will now be exempt from paying personal  income tax. 

This is one of the measures announced by Finance Minister Colm Imbert during Monday’s presentation of the 2020/2021 national budget, with an aim to “provide relief to working class families”. 

“This will put additional income of $3000 per year into the pockets of over 250,000 individual taxpayers. This bold measure will cost the government $750 million per year in individual income tax revenue. But we firmly believe, Madame Speaker, that in this difficult COVID-19 period, it will stimulate the demand side of the economy, by stimulating economic activity, consumption, sales and growth by putting more money in the hands of consumers. We believe that through the multiplier effect, the net effect on our GDP will be much more than $750million,” Minister Imbert said.

The measure will come into effect January 2021.

Previously, earners of $6000 and more were subject to income tax.

 

Share