2,100 individuals to be tax-exempt, thousands to pay less income tax

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2,100 individuals to be tax-exempt, thousands to pay less income tax

PRESS RELEASE – Effective January 1, 2015, 2,100 individuals will be exempt from income tax and approximately 9,443 will pay less income tax.

These changes are the results of major adjustments to the income tax regime, announced in the 2014/2015 Budget Statement by Prime Minister Dr. Kenny D. Anthony.

Firstly, in keeping with a promise made in the Saint Lucia Labour Party’s Manifesto, the deductible personal allowance will increase from $18,000 to $21, 000. This represents a further $3,000 in allowable deductions and will exempt 2,100 persons from the tax bracket.

Secondly, a reduction in the tax band from four to three, with consequent changes to rate of taxation, will redound to the benefit of all taxpayers. The proposed tax rates are as follows:

As explained by the prime minister in his presentation to the House of Assembly on Tuesday, May 13, 2014, “taxpayers who now pay 15 percent on their assessable income will now pay 10 percent. Taxpayers who now pay 20 percent on their assessable income will now pay 15 percent. Finally, taxpayers who pay 30 percent will now pay 28 percent.”

Dr. Anthony also announced changes aimed at simplifying and reducing the cost of the tax-filing process.

According to the prime minister, “Mr. Speaker I propose to eliminate the Housekeeper Allowance of $200, the Dependent Relative Grant of $350 and the subscriptions or donations to a professional association amounting on average to $1,500. As explained by the Prime Minister in his presentation to the House of Assembly on Tuesday, May 13, 2014, ‘taxpayers who now pay 15 percent on their assessable income will now pay 10 percent. Taxpayers who now pay 20 percent on their assessable income will now pay 15 percent. Finally, taxpayers who pay 30 percent  will now pay 28 percent’.”

“Mr. Speaker, there is an important reason why we have to move in that direction. We have modernised our tax services by allowing electronic filing (e-filing) and registration. Having done so, it is inefficient and somewhat impractical to request taxpayers to bring proof of a housekeeper, a dependent relative or subscriptions or donations to professional associations every time they file electronically. It is essential that the filing process is seamless and without frustration.”

These new measures will take effect in January 2015.

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7 COMMENTS

  1. Not many of us pay even 15 percent. Most people I know myself included pay 10 percent. How many of us will benefit from this? Plus now we can't file for dependent relative?!?! Such crap. No proof was needed for that anyway.

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  2. Hey If you ask me, It appears, and I may be wrong, No money to pay refunds so the least persons to refund and with a 5% salary cut imminent he is trying to see if he can avert a major industrial backlash but in one year time we may see that change again. But with butter now having vat, people may have to resort to putting salt on their meats now, Kenny has already anticipate that he blast you with VAT on these products. Man He good.

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  3. while we have moved to the e filing for income tax i have noticed that there is a pre amount already given to each deductable. in the case where one pays more for example dependents is $200 and we pay $500. what happens? are we being robbed a further $300.

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  4. About time. Reduce inefficiencies and provide relief from income tax since we are now paying vat.

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  5. While I applaud these new measures, the government should be well aware that income tax refunds take years to be paid to the average taxpayer, unless a "contact" can help you get it earlier. Is this supposed to help us swallow the 5/10% cuts being proposed?

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