THE income tax threshold will be increased by $300,000 to $2 million over the next three years.

The announcement was made on Tuesday by Minister of Finance and the Public Service Fayval Williams, as she opened the 2025/26 Budget Debate in the House of Representatives.

“We are a responsible Government and so we will increase the threshold in three tranches to $1.8 million, then $1.9 million, then $2 million over a three-year period starting April 1, 2025,” Williams said to loud and sustained desk-thumping by Government parliamentarians.

“Doing it this way means our hard-working taxpayers don’t have to guess and spell next year, or the next year, or the next year, if the threshold is going to increase,” she added.

The last time pay-as-you-earn (PAYE) employees benefited from an increase in the income tax threshold was on April 1, 2024 when the ceiling was moved to $1.7 million from $1.5 million. The announcement of that increase was made by former Minister of Finance Dr Nigel Clarke in his final budget presentation.

At that time Clarke said the Government could not increase the threshold further as it was giving up $9 million in tax revenue, and any further increase could affect economic stability.

Williams did not say how much revenue the Government will be giving up this year.

At the same time, she took jabs at the Opposition, saying that reducing taxes is not in their DNA.

“When you reduce taxes, you get more people employed. The result? More revenue to the Government to build more roads; provide water infrastructure; invest in the security forces, in education, health, broadband infrastructure, and training of our people. That equation has eluded some who want to run this country. They are talking about raising taxes,” she said.

She recalled a comment by one member of the Opposition last year that if the People’s National Party were to be voted into office it would increase taxes on imported food items.

While the Opposition walked back the comment after facing criticism, Williams said on Tuesday: “No matter how much they run and try to distance themselves from raising taxes by making it seem they did not say so, or by pretending it was a little joke, reducing taxes is not their history.”

With the first $100,000 of the latest increase to take effect April 1, PAYE workers will not pay income tax on the first $1.8 million that they earn.

In the meantime, Williams closed her maiden budget presentation as finance minister, remarking that for the eighth successive year Jamaicans will face no new taxes.

“We come to the people of Jamaica with a balanced budget and no new taxes. Once the JLP (Jamaica Labour Party) is in power, your income tax will be going down,” Williams said.