THOUSANDS BENEFIT AS INCOME TAX RELIEF MEASURES TAKE EFFECT

Roseau, Dominica – January 31, 2008…… Thousands of Dominicans are now seeing the benefits  of the income tax relief measures promised  by Prime Minister and Minister for Finance, Hon. Roosevelt Skerrit  in his 2007/2008 Budget Address last July with the payment of January salaries by Government.

 

A taxpayer earning $1500 per month will be $600 a year better off as a result of the income tax adjustment. A person earning $2000 per month will be $720 a year better off, while an individual earning $2500 a month will be $840 a year better off.

 

A taxpayer earning $3000 per month will be $1260 per year better off while one earning $4000 a month will be $1700 a year better off.

 

In addition, as a result of the increase in the non-taxable personal allowance, an additional 1,036 persons will no longer pay any income tax. Taking into account those persons who have filed returns with the Inland Revenue Division (IRD), the total number of exempt persons is a minimum of 3,149.

In his 2007/2008 Budgetary Proposals, the Prime Minister announced a plan to provide income tax relief to Dominicans over a three year period. As of January 1^st 2008, the following are the measures that have taken effect in this, the first year of the three year personal income tax adjustment period:

·        The non-taxable personal allowance has been increased from $15,000 to $18,000;

·        The rate on the first $20,000 of chargeable income has been reduced from 20% to 18%. This band has been broadened from $18,000 to $20,000 so that more persons fall in the low tax bracket;

·        The rate on the next $30,000 of chargeable income has been  reduced  from 30% to 28% and

The rate on chargeable income above $50,000 has been reduced from 40% to 38%.