Government to announce new tax measures
The lowering of the income tax threshold will be among the new tax measures to be announced by Prime Minister Dr Keith Mitchell in a national broadcast scheduled for Tuesday night.
According to a news release from the Government’s Information Service, Mitchell will report on the status of the home grown structural adjustment programme and use the opportunity to announce some measures that will form part of the programme.
“He will report new figures on lowering the income tax threshold and provide a commencement date,” said the release which confirmed that Dr. Mitchell will also share with the nation, figures on soft loans and grants the country is expected to receive from international agencies, as well as technical and other financial support.”
“He will tell the nation how Government is tackling the issue of tax delinquents and outline plans to collect outstanding revenue, he will update the country on Government’s waste reduction, such as cutting back non personal expenditure, international travel, cell phones and consultations with the social partners such as the Trade Union Movement; the Business Community and Non Government Organizations,” the release added.
Persons earning more than EC $60,000 (One EC dollar= US $0.37 cents)are required to pay income tax of 30% per annum but under the new measures , those earning between EC $30,000 to EC $36,000 per annum will be required to pay.
The possibility of a change to the income tax threshold emerged when the World Bank and IMF indicated that Grenada should lower the tax threshold from EC $5,000 a month, as part of a package aimed at stabilizing the economy.