KINGSTON, Jamaica (JIS) – Minister of Finance and the Public Service, Audley Shaw, is encouraging Pay-As-You-Earn (PAYE) workers, who are taking home more pay as a result of the first phase of increase in the income tax threshold, to spend the money responsibly.

He was speaking during yesterday’s sitting of the House of Representatives.

A total of 251,800 PAYE workers have benefited from the increase in the personal income tax threshold from $592,800 to $1,000,272, which took effect on July 1, 2016. The second phase takes effect on April 1, 2017 and will see the personal income tax threshold moving to $1,500,096.

Shaw said this phase of the tax reform plan is a signal to the Jamaican people that the Government wants to put more into their pockets while expecting, in return, higher levels of personal productivity at their workplace.

He noted that the Government has begun the shift towards indirect taxes, adding that this comprehensive tax reform will leave more money in the pockets of ordinary Jamaicans. He added that this will allow them to have more and better choices as to how to spend their own income.

Shaw said the shift towards indirect taxes away from direct taxes such as personal income tax is consistent with global trends and enhances economic growth. “As we move to more collectable indirect taxes, the Government will ensure that the most vulnerable in our society is protected,” he said.

The reform of the personal income tax regime was part of the administration’s 10-point plan to spur economic growth.