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    Row K Entertainment Emerges as Major New Hollywood Buyer With Splashy TIFF Shopping Spree – TheWrap

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Economist supports increase in income tax threshold

February 14, 2024
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Economist supports increase in income tax threshold
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Dr. Samuel Braithwaite, lecturer in the Department of Economics at the University of the West Indies, Mona and financial analyst Dennis Chung

By Nakinskie Robinson   

Lecturer in the Department of Economics at the University of the West Indies, Mona, Dr. Samuel Braithwaite says he is in support of an increase in the income tax threshold despite the likelihood of the move not achieving wide scale economic relief as is being touted by the government.

Jamaica’s labour force comprises 1.3 million workers but only 400,000 people earn above the $1.5 million threshold.

Dr. Braithwaite maintained that regardless of the numbers, the increase will be beneficial. 

“It’s a good move regardless of whether the numbers are significant enough – significant in a national sense. The fact is there are thousands of persons who are now going to benefit from it. So if we use the inflation rates coming all the way from 2016 through to 2023, based on my simple calculations, then that annual non-taxable income should be through 2.3 million,” he suggested. 

Meanwhile, financial analyst Dennis Chung said the government should also consider moving away from direct taxes which includes PAYE paid by workers who earn above the $1.5 million threshold. 

“In addition to the tax threshold being increased, persons over $10 million were being asked to pay more taxes. So I didn’t think that was the most efficient thing to do. But that shows that it’s not an easy thing to just raise the threshold, because it has to be financed somewhere. In terms of the PAYE, it’s a very inefficient tax to get people to pay it, but also the collection of it is more inefficient than indirect taxes, which is GCT. Those taxes that are based on consumption are much more efficient to administer,” he explained. 

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : RadiojamaicaNewsOnline – http://radiojamaicanewsonline.com/local/economist-supports-increase-in-income-tax-threshold

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