From January 1, 2023 people earning $7,500 a month will be exempt from income tax, says Finance Minister Colm Imbert, as he laid in Parliament the proposed budget for 2022-2023.
“As a fiscal stimulus to the economy we are providing relief to working families by increasing the personal income tax exemption limit from $84,000 to $90,000 per year,” Imbert said. “All individuals earning $7,500 a month or less will now be exempt from income tax.”
Imbert said the adjustment to the income tax exemption marks the third time the PNM has increased the personal allowance, and will put an additional $1,500 of disposable income in the hands of over 300,000 taxpayers.
“These measures will cost $450 million a year in additional revenue.
"But this government believes in this difficult period it will stimulate the demand side of the economy, economic activity, consumption, sales and growth by putting more money in the hands of consumers.”
He said the measures will require amendments to the Income Tax Act.