Taxpayers in the public and private sectors will now be paying less taxes, as the government announces plans to increase the income tax threshold from $85,000 to $100,000 in the government’s national budget for 2024.
Income tax threshold is the established amount of money that is taxable. It means once a person earns more than the established amount, they must pay income tax.
According to the Senior Minister in the Office of the President with responsibility for Finance, Dr Ashni Singh, the intervention will place $4.8 billion of disposable income into the pockets of taxpayers in the public and private sectors.
Additionally, 13,000 persons from the private and public sectors will be removed from the income tax bracket effective January 2024.
Last year, the Budget 2023 saw the income tax threshold being increased from $75,000 to $85,0000 and in Budget 2022, it was increased from $65,000 to $75,000, signalling the government’s commitment to increasing disposable income for citizens.
This initiative is among the plethora of interventions implemented by the government since its assumption to office on August 2, 2020, to inject additional disposable income into the economy. (DPI)
