The ruling Jamaica Labour Party (JLP) and Opposition People’s National Party (PNP) on Sunday dangled income tax break promises before the electorate two days before both parties lock horns in the highly anticipated debate on economic matters.

Dr Andrew Holness, the JLP leader and prime minister, told cheering supporters at a mass rally in Montego Bay, St James, that the party, if elected for a third-consecutive term, will reduce the personal income tax rate to 15 per cent from the current 25 per cent on a phased basis, taking the threshold to $2 million over the next two years in a move from direct to indirect taxation.

At the same time, PNP President and Opposition Leader Mark Golding announced at a mass rally in Mandeville, Manchester, that if his party wins the election, income will be tax-free for Jamaicans who earn $3.5 million or less annually.

Holness, in his address, reminded that when the JLP proposed to move the tax threshold to $1.5 million in 2016 the PNP poured cold water on the proposal, saying that could not work.

“We were the party that delivered $1.5 million in the income tax threshold when the PNP said it couldn’t be done. We have [now] raised it to $1.7 million, and we will increase it to $2 million over the next two years so that your take-home pay continues to rise,” Holness said.

“Over time, we will reduce the base rate of personal income tax from 25 per cent to 15 per cent on a phased basis and shift gradually from direct to indirect taxation, which will allow hard-working Jamaicans to keep more of their pay cheque,” added the prime minister.

Pointing to the importance of equity in the implementation of such a tax threshold Holness said, “Some people have a lot of money and some people have very little. Any policy you make amounts to a distribution of some value or equity. You can make a policy that will give people who are already getting more, and people who don’t have, they get less. When you do the income tax threshold, you have to be careful that you don’t ask the person who is not working to pay more tax, while the person who is working pays less tax. You have to be careful. So you have to do it in a way that is balanced,” warned Holness.

He said the rationale for the gradual reduction in the income tax threshold is to ensure that the poor don’t get poorer, while the rich get richer.

Holness also promised a tax exemption for elderly Jamaicans as the JLP unveiled its 110-page iChoose Jamaica, The Next Chapter election manifesto in Sam Sharpe Square.

“For seniors aged 65 and over, we will exempt all employment and pension earnings from income tax where [the] total income from all sources is $6 million or less per year, because we are honouring our seniors who have built Jamaica,” stated Holness.

Hours later, at the PNP rally in Mandeville Square, Manchester, Golding held out his party’s income tax plan.

“The JLP talking about adjusting the rate of income tax… but that is going to benefit those who are very wealthy more than it will benefit those who are less wealthy, because the rate, once reduced for them, means that they will be paying less tax because they’re earning more to begin with,” he said.

“We are going to deal with that matter in a way that benefits those who need it most. Under the PNP Government that is to come, we will be increasing the tax threshold so that persons who currently pay tax at 25 per cent, if they’re earning up to three-and-a-half million dollars a year, they will be paying tax at zero per cent. Under the next PNP Government, we will be raising the threshold to give them a tax-free income,” Golding added.

The Opposition leader said the PNP will not stop there “because as the economy improves and fiscal space improves, we will raise that tax threshold further and further, because we want money to be in the pockets of those who are struggling right now to make ends meet so they can consume goods and services and make the economy stronger, make their lives better, and make Jamaica move up, up, up.”

In her maiden budget presentation in March, Finance Minister Fayval Williams said the income tax threshold would be increased by $300,000 to $2 million over three years.

“We are a responsible Government and so we will increase the threshold in three tranches to $1.8 million, then $1.9 million, then $2 million over a three-year period starting April 1, 2025,” Williams said.

“Doing it this way means our hard-working taxpayers don’t have to guess and spell next year, or the next year, or the next year, if the threshold is going to increase,” she stated.

Tuesday night’s debate on economic matters will pit a JLP team of Fayval Williams, Christopher Tufton, and Dana Morris Dixon against a PNP team of Julian Robinson, Peter Bunting, and Kisha Anderson.

Meanwhile, on Sunday night, Holness also revealed that a future JLP Government will introduce a national health plan for seniors aged 60 and over, which will initially cover more than 400,000 people and provide benefits for 10 chronic illnesses.

He said this will be expanded in phases towards universal health coverage.

“As we move along, and we can secure the income, we will move the age lower from 60 to 40, and then we go down to 30 until it’s universal for all Jamaicans,” explained Holness, who noted that this will be done in a way that “will not bankrupt the country or cause you to have to pay more taxes.”

Hotel, restaurant and bar workers will also receive tax exemption on tips and gratuities from income tax up to $3 million of income. “But, importantly, we will pass legislation requiring that at least 80 per cent of service charges and gratuities be paid over to employees within three months. That gives you a greater guarantee,” stated Holness.

Earlier, Health and Wellness Minister Dr Christopher Tufton said a third-term JLP Government will increase the presence of doctors in health centres from two to five times a week.

The JLP manifesto also proposes a childcare grant for women with children born since the year 2022 who enrol in a HEART/NSTA Trust programme. According to Holness, this is an incentive for mothers not to use childcare as an excuse for not getting a skill.

For people who have a student loan to service, Holness announced the implementation of a student loan debt reset, from November 1, 2025, to March 31, 2026, that grants a 100 per cent waiver on late fees, penalties and insurance charges for delinquent borrowers. Additionally, there will be a 50 per cent waiver for interest arrears and a 100,000 credit for borrowers who have kept their account in good standing.

Holness also spoke about a mortgage interest reduction programme aimed at assisting some public sector workers.

“We will launch a one-in-five and a two-in-10 programme so that teachers and nurses and members of the security forces working in the public sector can receive a one per cent mortgage interest reduction after five years and a two per cent interest reduction after 10 years,” stated Holness, who noted that this will be in addition to the low interest rate provided by the National Housing Trust.

Jamaica Labour Party (JLP) Leader Prime Minister Dr Andrew Holness addressing the JLP’s mass meeting in Sam Sharpe Square, Montego Bay, St James, Sunday night.

Jamaica Labour Party supporters in a jubilant mood during the party’s mass meeting on Sunday in Montego Bay.

People’s National Party supporters at the party’s mass meeting in Mandeville, Manchester on Sunday. (Photo: Karl Mclarty)

People’s National Party supporters at the party’s mass meeting in Mandeville, Manchester on Sunday (Photo: Karl Mclarty)