KINGSTON, Jamaica – On Tuesday, January 14, the House of Representatives approved key amendments to the Income Tax Act, cementing the revenue measures unveiled in the 2024/25 Budget. Finance and Public Service Minister Fayval Williams highlighted that these changes aim to address economic challenges while driving growth and social equity.
Strategic Fiscal Measures to Boost Economic Growth
Minister Williams explained that the Government’s approach leverages improved macroeconomic stability to implement reforms focused on reducing trade barriers, improving administrative processes, and protecting citizens’ purchasing power against global inflationary pressures.
“This administration has created fiscal flexibility by improving Jamaica’s economic framework and reducing national debt. These measures allow us to stimulate investments, particularly in renewable energy, while directly supporting vulnerable populations,” she stated.
Tax Reliefs to Alleviate Burdens
Among the key changes:
- Increased Personal Income Tax Threshold: Now set at $1.7 million, up from $1.5 million, this measure offers relief to low-income earners.
- Reverse Tax Credit: A credit targeting Jamaicans earning less than $3 million annually.
- Enhanced Pensioner Benefits: Tax exemptions expanded, exempting an additional 2,046 pensioners.
- Duty-Free Allowance: The threshold for personal and household items was doubled from US$500 to US$1,000.
“These reforms provide critical relief for pensioners, low-income households, and other vulnerable groups while fostering greater social equity,” Williams emphasized.
Empowering MSMEs with Junior Stock Exchange Incentives
Acknowledging the importance of micro, small, and medium-sized enterprises (MSMEs) to Jamaica’s economy, the amendments increased the cap on voting equity capital for companies listed on the Junior Stock Exchange from $500 million to $750 million.
“The increase allows more MSMEs to access tax incentives such as income tax relief and exemptions on transfer tax and stamp duty, broadening opportunities for growth and investment,” Williams said.
Since its inception, the Junior Stock Exchange has facilitated significant capital mobilization, with $62.2 billion raised by listed companies as of December 2024. “Imagine investing when the market index was 150 in 2009, compared to its current 3,735. The growth potential is immense,” Williams noted, urging more MSMEs to seize these opportunities.
Green Investments at the Forefront
The Budget also underscores the Government’s commitment to sustainability, with measures promoting renewable energy investments. This move aligns with global trends and Jamaica’s goals for reducing carbon emissions and energy dependence.
Building a Resilient Future
Minister Williams concluded by reiterating the Government’s focus on economic resilience and inclusivity. “Through these reforms, we are addressing immediate economic challenges while laying a foundation for sustained growth, equity, and environmental responsibility.”
These measures represent a pivotal step in Jamaica’s journey towards achieving long-term financial and social goals, fortifying the nation’s standing in a competitive global economy.
