Phase it in! 1.5 is here. Sing Hallelujah? 

I caught part of the budget yesterday but not enough to do any analysis. Here is a fellow blogger on the main points of the budget.

Jamaica: Political Economy

Finance minister, Audley Shaw, kept us all in suspense yesterday as he dangled the electoral carrot of tax relief in front of our mouths. He knew that all people wanted to hear about was the ‘1.5’, the new shorthand for an election campaign promise to raise tax thresholds. When he eventually spilled the beans, it was an interesting dish.

He offered an across-the-board income increase in PAYE income tax threshold to $1,000,272,effective from July 1, 2016. That would cost $12.5 billion this fiscal year. He kept the promise to raise the tax threshold to $1.5 million, but it would be for all on PAYE, and would be delayed further to April 1, 2017. His catch phrase was “Phase it in!”

That was dessert, and it may be sweet for some: the increased threshold means that additional $8,489 per month for those on PAYE, and those…

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