Budget 2022: Income tax threshold increased to $75,000 monthly
Taxpayers in the public and private sector will now be paying less tax, as the income tax threshold is budgeted to be increased from $65,000 to $75,000 monthly.
Senior Minister in the Office of the President with responsibility for finance, Dr. Ashni Singh, M.P, made this announcement during his National Budget presentation on Wednesday.
This increase, Minister Singh said, will see a total of $1.3 billion being placed into the hands of taxpayers in the public and private sectors.
Meanwhile, the government is seeking to allow taxpayers a deduction from their chargeable income for premiums paid for life and medical insurance up to a maximum of 10 percent of their income or $30,000 monthly, whichever is lower.
This deduction will reduce the amount of taxable income and ultimately the tax payable by the taxpayer, while at the same time secure assurance and assuage the concerns of many citizens on their long-term health care needs and the needs of their families in the unfortunate circumstance of their demise. This measure is projected to cost approximately $1.1 billion.