KINGSTON, Jamaica – Thousands of Jamaicans will begin to benefit from an increase in the personal income tax threshold, effective tomorrow, as it moves from $592,800 to $1,000,272.

A news release from the Ministry of Finance and the Public Service on Thursday said the increase in the personal income tax threshold is consistent with the Government’s thrust to reduce the level of taxes on individuals and businesses.

The ministry said the Government has continued to execute its tax reform package, which will see a shift from direct tax to the implementation of indirect tax measures.

In tandem with a tax reform programme, the ministry said, is the thrust to increase tax compliance. It said the Government will continue, through Tax Administration Jamaica, to ramp up efforts in that regard.

Also effective tomorrow, July 1, earners in excess of $6 million will begin to pay an additional five per cent on the personal income tax, moving the tax rate from 25 per cent to 30 per cent.

The ministry said this new rate will be applied after the statutory income is computed and the income tax threshold has been applied.

“The period of July to December 2016 will be subject to the new rate of taxation at 30 per cent, and treated as a distinct period for the application of tax,” the ministry stated.

The Government has already begun to make adjustments to the configuration of the Revenue Administration Integrated System (RAiS) and other operational changes along with the relevant amendments to the legislation, which will facilitate the implementation of the increased personal income tax for people who earn in excess of $6 million, the release said.

“In January 2017, the tax rates will be normalised, and the full tax rate of 30 per cent on personal income tax for earners in excess of $6 million will be applied on the annualised statutory income,” the ministry said.