Gov't launches multi-billion dollar reverse income tax credit regime

By Racquel Porter   

 

The government has launched its $11.5 billion reverse income tax credit regime, which will offer a one off $20,000 payment to Jamaicans earning less than $3 million annually.

 

This comes seven months after outgoing Minister of Finance Dr. Nigel Clarke announced the initiative in his Budget debate presentation.

 

Acknowledging that there are inequalities in terms of income distribution in Jamaica, Dr. Clarke said the government is taking steps to address the issue.

 

"When you add up NHT deductions, [Education] tax deductions, you could even say NIS, even though it is, you know, for the person's benefit in the long run - you're talking about up to 9 per cent that's coming out of their pay every single month. And we're saying to those people, Jamaica cannot exist without you. Jamaica needs you. And we want you to know that Jamaica cares about you," the minister declared. 

 

Dr. Clarke said the government will continue to steward the economy in a way that preserves stability while "doing innovative things" to share the fruits of macroeconomic stability. 

 

Eligible persons may apply online via the Tax Administration Jamaica website.

 

The deadline for applications is January 2, 2025.