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Allison Peart, Managing Director of A. Peart Advisory Services
Tax expert Allison Peart believes the timing of the increase in the personal income tax threshold will create an administrative burden for accounting practitioners.
Finance Minister Fayval Williams, opening the Budget Debate for the new financial year in the House of Representatives on Tuesday, announced that the income tax threshold will be increased to two million dollars over a three-year period beginning on April 1.
Miss Peart, who is also managing director of A. Peart Advisory Services, argues that the government should allow changes to the personal income tax to take effect on the first of January.
She says this would make the process easier and less confusing for people who want to figure out the amount for the year.
"When you do it on April 1, it drives us all into a tizzy when we have to do the returns or you have to do your payroll taxes," she said, explaining that adjusting the computations for payroll taxes four months into the calendar year presents unnecessary complications.
"The government's year-end is March 31, but when you are taxed, it's January to December, so when she says $1.7 million in April, it's not 1.7 for the year, its for eight months," she explained.
The government announced that the threshold would first move from the current $1.7 million to $1.8 million, then to $1.9 million, and finally to two million dollars.
Ms Peart also wants the government to link the personal income tax threshold to inflation.
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