THE Income Tax (Amendment) Bill No. 4 of 2012, which amends the Income Tax Act was on Tuesday tabled in the National Assembly by Finance Minister Dr. Ashni Singh.
The amendment to the Bill which will come into operation with respect to and from the year of assessment commencing January 1, 2013, will increase the personal income tax threshold from $480,000  to $600,000 per year.
In his 2012 Budget presentation on March 30, Dr Singh had indicated that with effect from year of income 2012, the income tax threshold would be increased to $600,000 annually or by 25%, from $40,000 to $50,000 per month. This proposed threshold is double that of about five years ago.
“As a result of this measure, every taxpayer will benefit with higher take home pay. For example, a person whose income before tax is $50,000 per month will now take home $40,000 more for the year. In addition, some 21,000 persons will be removed from the income tax net, and over $3 billion of additional disposable income will be placed in the hands of beneficiaries,” the Finance Minister stated.