As part of government’s measures to improve workers’ income, the income tax threshold will be raised from $50,000 per month to $55,000 per month, Finance Minister Winston Jordan announced yesterday.
As a result, Jordan said during his 2016 budget presentation, over 68,000 workers will be removed from the income tax roll, and workers will have an additional disposable income annually.
Jordan noted that he had last year, during his inaugural budget presentation, admitted that the tax system was far from “efficient, equitable and fair.”
As a result, he had established a four-person Tax Review Committee charged with coming up with a range of recommendations to improve the system. He said while it was anticipated that the Committee would have presented its report by end-December, 2015, to enable implementation from the 2016 budget, the report was submitted on January 18, 2016, which was too late for Cabinet to consider and pronounce on all of the recommendations. He did, however, note that some of the tax reform measures announced were in line with the Committee’s recommendations.
Meanwhile, Jordan held off making an announcement of salary increases for public servants for 2016, while explaining that it has to await the conclusion of discussions with the relevant labour unions.
“The government understands the disappointment this will create among public servants, but wishes to assure them of our commitment to their welfare and advancement. We ask that they give the collective bargaining process an opportunity to work,” he said.
Jordan’s announcement of an increase last year, in the absence of any negotiations with the unions, was criticised.
