KINGSTON, Jamaica — Minister of Finance and the Public Service, Audley Shaw, says that several challenges have been encountered, which may cause a delay in the actual implementation of the plan to increase the income tax threshold to $1.5 million, in the next fiscal year.

Shaw was speaking at the Private Sector Organisation of Jamaica (PSOJ) President’s Forum, today, at the Jamaica Pegasus Hotel, in New Kingston.

This income tax break was one of the initiatives highlighted in the administration’s 10-point plan for economic growth and prosperity, outlined in its manifesto.

Under the arrangement, income tax will be removed for people earning a gross annual salary of $1.5 million or less.

The finance minister, however, assured that the administration was assessing a number of options to ensure that it is put in place.

“It is firm and irrevocable and my commitment is that even if it doesn’t start April 1, because of the budgetary process, it will at least be retroactive to April,” he said, reminding that the pay cycle for PAYE employees is at the end of the month.

The minister noted that the Cabinet would be meeting for three days this week, starting tomorrow (March 30), and they will have further discussions on the matter.

“We will complete that process this week to mitigate the fiscal impact of this measure, and we remain confident that it can be accommodated within the context of broader tax reform, which is where we welcome the assistance of the private sector,” he said.