Georgetown: Finance Minister Dr. Ashni Singh in presenting the country’s largest budget of $208.8B said, with effect of 2013, personal income tax will be charged on income above the current threshold of $50,000 per month or $600,000 per annum at a rate of 30 percent instead of 33⅓ percent.
As a result of this reduction in the personal income tax rate, more than 184,000 taxpayers will benefit with higher take home pay, and an additional $1.8 billion of disposable income will be placed annually in the hands of the taxpaying public.
Meanwhile with effect from June 1, 2013, the contribution rate for both employed and self-employed contributors will be increased by 1%. This will generate additional revenue for the NIS of approximately $890 million per annum.
However, Dr. Singh said in order to ensure that the vulnerable feel no impact as a result of this increase, government will meet both the employer’s and the employee’s share of the increase in contribution payable with respect to employed persons whose income is not more than $50,000 per month. This initiative will cost the government approximately $215 million per annum and will benefit 58,300 contributors.
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