Tax ease threshold raised to $35 000
More Barbadians than anticipated will benefit from the income tax ease announced by Finance Minister Chris Sinckler in the Budget.
That’s because the tax threshold on earnings has been moved from $24 200 to $35 000 – and not $30 000 as indicated in the Budget on Tuesday.
In wrapping up debate on the 2012 Financial Statement And Budgetary Proposals in the early hours of yesterday morning, Sinckler explained that an error had been made in the text of the presentation.
The expansion of the tax threshold was accompanied by a reduction in the tax rate on income between $24 200 and $35 000. Those earnings will be taxed at 17.5 per cent rather than at the existing 20 per cent.
People earning more than $35 000 will pay 17.5 per cent on the first $35 000 of taxable income and continue to pay a 35 per cent rate above that.
Sinckler said the measures were aimed at restoring income lost as a result of allowances being taxed. (DP)