Roseau, Dominica – Wednesday July 23, 2014 – An increase in the non-taxable income allowance has resulted in 1508 people no longer paying income tax. Prime Minister and Minister for Finance the Honourable Roosevelt Skerrit made the announcement when he presented the National Budget Address at the First Meeting of the Fifth Session of the Eighth Parliament under the Commonwealth of Dominica Constitution. Prime Minister Skerrit stated that effective January 1, 2015 “the non-taxable allowance will be increased from $20,000 per annum to $25,000 per annum.”
Prime Minister Skerrit specified that Government believes the best way to bring direct relief to citizens is through a reduction in personal income tax, giving each employee more money in his pocket.
“Effective 1st January 2015, the non-taxable allowance will be increased from $20,000 per annum to $25,000 per annum. As a result of this policy anyone earning $25,000 and less per annum or $2,083 or less per month will not pay personal income tax. This equates to an additional 1508 people who will no longer pay income tax. For those who will continue to pay tax, this measure also results in an overall reduction in the tax paid. For example, a person earning $2,500 per month is now paying $125.00 per month in income tax. With the increase in the non-taxable personal allowance, the tax to be paid is estimated at $62.50. A person earning $3,500 per month is now paying $291.67 per month and will pay $212.50 per month with the change. A person earning $6,000 per month is now paying $933.33 per month and will pay $812.50 per month with the change. A person earning $10,000 per month is now paying $2,333.33 per month and will pay $2,187.50 per month with the change,” Prime Minister Skerrit stated.
Paying no or less taxes translates to increases in salaries but a cost to the state, Prime Minister Skerrit encouraged the beneficiaries to make good use of their expanded income
“For the public officer who earns $2,500 per month, the value of the benefit from this measure equates to the value of a 3.0 percent salary increase. For the officer who earns $6,000 per month, the value of the benefit equates to the value of a 2.0 percent salary increase… One can well appreciate the compounded nature of these measures. A taxpayer who benefits from this relief along with the mortgage interest will pay much less tax. Overall, this change will cost the State $5.3 million. While this measure is largely intended to help families meet their needs, we believe that if it results in greater satisfaction and productivity, the cost to the State will be less in real terms than the amount I have just quoted. I therefore ask all employees in both the private and public sector to make this measure worthwhile,” Prime Minister Skerrit stated.
Prime Minister Skerrit presented the 2014/2015 National Budget under the theme “Towards Expansion of the Economy”. The Estimates of Expenditure for financial year ending June 30, 2015 amounts to four hundred and eighty-nine million, nine hundred and seventy-five thousand, four hundred and eighty dollars ($489,975,480.00).
The Dominica Labour Party Administration is committed to building a strong platform for sustained economic growth by implementing prudent fiscal and economic policies which have insulated the country from the more severe effects of the global recession.
For more information, questions, queries or comments:
Daryl V Titre Press Attaché Office of the Prime Minister Financial Centre Roseau, Dominica
titred@dominica.gov.dm pressadom@gmail.com www.opm.gov.dm www.facebook.com/PressAttacheDOM http://twitter.com/PressAttacheDOM http://instagram.com/press_attache
Tel: 1 (767) 266 4279 Mobile: 1 (767) 275 3349
Ref: GOVPR149/ 2014-07-23
GOVPR149.pdf
