Increase in Income Tax threshold - 2015/2016 Budget

Finance Minister Dr. Peter Phillips has announced a further increase in the income tax threshold for PAYE earners with effect from next January.

It's among a raft measures outlined in the 2015/2015 budget, the biggest of which is an increase in the tax on gasoline to yield about $6.4 billion .

Another item of taxation is the reintroduction of the General Consumption Tax (GCT) on electricity for residential customers – for those who use more than 350 kilowatt hours per year. This should yield about $807-million.

Other tax issues is a rationalization of an environmental levy to introduce a point-5-percent cess on the domestic sale of goods.

There is good news for children of  public sector workers who apply for students' loans.

In his presentation of the Budget this afternoon,Phillips announced that there will be some relief  in the repayment of  Students Loan Bureau (SLB) benefits.

Effective the 2015/2016 academic year the processing fees for applications for loans for the children of  public sector workers will be reduced by 35 percent.Interest rates on student loans to children of  public sector workers will be charged at one percent lower than the interest rates normally charged to SLB applicants. 

In addition, public sector workers applying for student loans will be  allowed to access the loan with one guarantor based on satisfactory  assessment.