$1.275m threshold for all

Minister Audley Shaw, announced an across the board threshold for individual tax payer of $1.275 million, effective July 1 this year, and to move it to $1.5 million, starting April 2017.
Shaw stated that 251,000 persons will benefit from the plan which is said to cost $12 billion in this fiscal year. The Minister announced a series of tax measures to fill the gap caused by the shortfall arising from the tax plan. Taxes will go up on cigarettes, petrol, heavy fuel, LNG and departure tax.
Tax payers earning over $6 million per annum will pay taxes above the threshold at 30 percent instead of the current 25 percent.
The Minister stated that the plan is to move from direct taxation to indirect taxation with the expectation to fully phase out personal tax.
Shaw presentation place a great deal of focus on growth and development, including focus on improved infrastructure including extension of the south coast highway to Negril.
The minister projected economic growth at 1.8 percent for the fiscal year up from 0.8 percent for the 2015/16 fiscal year. The Minister also stated the drive for comprehensive tax reform to be pursued.