Revenue Measures to Boost Economic Growth and Equity Codified
Minister of Finance and the Public Service, the Honourable Fayval Williams, M.P., at today’s Post Cabinet Press Briefing, highlighted the Income Tax (Amendment) Act 2025 taken in Parliament yesterday, January 14, 2025. This legislative milestone formalizes critical revenue measures outlined in the 2024/25 budget, further solidifying Jamaica’s fiscal and economic stability.
Key Highlights of the Revenue Measures:
- Support for the Jamaican Taxpayers: The income tax threshold exemption was increased to 1.7 million.
- Support for Vulnerable Groups: Pensioners and individuals aged 65+ will benefit from increased tax exemptions, rising from J$80,000 to J$250,040 annually.
- Encouragement for Renewable Energy Investments: Independent Power Producers (IPPs) producing 75% or more energy from renewable sources, such as solar or wind, will see a reduction in corporate income tax rates from 33 1/3% to 25%.
- Empowering MSMEs via Junior Market Expansion: The cap for maximum voting share equity capital for new companies listing on the Junior Stock Exchange has been increased from J$500 million to J$750 million.
- Corporate Tax Reduction for Trust & Corporate Service Providers: The tax rate for companies providing regulated trust and corporate services has been reduced to 25%, eliminating ambiguities and supporting industry growth.
Minister Williams at the Press Briefing emphasized, “We are reducing taxes, not increasing them, and these measures reflect our administration’s dedication to a balanced fiscal policy that prioritizes equity and growth.”
These amendments are demonstrable of the government’s commitment to reducing inequality, fostering sustainable development, and enhancing economic opportunities for all Jamaicans. These measures strengthen the social protection framework while promoting economic resilience.