Reverse Income Tax Credit to Benefit Thousands of Jamaicans
During the closure of the 2024/25 Budget Debate in the House of Representatives, the Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, unveiled plans for a Reverse Income Tax Credit aimed at aiding working citizens contributing to the Jamaican economy through regular statutory deductions.
Dr. Clarke emphasised that the provision primarily targets individuals earning below the income tax threshold, particularly those earning close to the minimum wage.
He revealed that approximately 570,000 Jamaicans, who earned less than $3 million in 2023 and contributed to the system via Education Tax, National Housing Trust (NHT), and National Insurance Scheme (NIS) statutory deductions, will be the primary beneficiaries.
“These are the persons who will qualify for the Reverse Income Tax Credit and anyone else regularized before the end of the fiscal year,” Dr. Clarke affirmed, indicating an estimated 450,000 individuals who earned less than $1.5 million and contributed to the system through similar deductions.
The Minister underscored the diverse occupations of these individuals, including security guards, room attendants, factory floor workers, cooks, waitresses, office attendants, messengers, janitors, drivers, sanitation workers, street cleaners, and maintenance staff, all of whom contribute significantly to the economy through their labour.
Highlighting the government’s commitment to leveraging economic stability for the benefit of its citizens, Dr. Clarke announced a substantial allocation of $11.4 billion to persons earning at the lower end of the income spectrum.
He emphasised that the initiative aims to support hundreds of thousands of hard-working Jamaicans, including those earning at or slightly above the minimum wage level.
The Reverse Income Tax Credit entails a benefit of $20,000 for every registered taxpayer earning $3 million or under. To ensure efficiency and security, the credit will be made available through an online platform.
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