KINGSTON, Jamaica – The Bustamante Industrial Trade Union (BITU) has come out in support of the proposal by the Jamaica Labour Party (JLP) to increase the Pay As You Earn (PAYE) income tax threshold to $1.5 million.

In a release Thursday, the BITU said it welcomes the plan to increase the threshold from the current $592,800 per annum to $1.5 million per annum.

President of the BITU, Kavan Gayle, said in the statement that any proposal to reduce the 25 per cent PAYE income tax paid upfront by workers, must be supported by the trade unions as “the clearest sign, from any political party, of a willingness to remove this albatross from around the necks of their members”.

“The increase in the threshold would provide some breathing space for the vast number of workers, and their unions, who see the PAYE system as unjust, ineffective and based primarily on the craving for taxes from the labour force,” Gayle stated.

He said that the system is a barrier to the competitive demands of the workforce, and what is being proposed by the JLP, if effected, could allow those workers who earn below $1.5 million to restore their purchasing power, improve their levels of disposable income, improve their chances of reducing their personal debt, increase their ability to pay for goods and services, and allow them to increase their savings.

He added that it must be recognised that the workforce has been operating in a serious austerity environment, which has included years of restraint on improvements in their salaries.