"Madam Speaker, as a fiscal stimulus to the economy and a fillip to the retail sector we are providing relief to working families by increasing the personal income tax exemption limit from $84,000 to $90,000 per year.
All individuals earning $7,500 a month or less will now be exempt from income tax.
This marks the third time this PNM Administration has increased the Personal Allowance and will put additional disposable income of $1,500 per year into the pockets of over 300,000 individual taxpayers.
This bold measure will cost $450 million per year in individual income tax revenue but we firmly believe that in this difficult COVID-19 period it will stimulate the demand side of the economy, economic activity, consumption, sales, and growth by putting more money in the hands of consumers.
We believe that through the multiplier effect the net effect of this increased allowance on our GDP will be more than $450 million.
This measure will require amendments to the Income Tax Act Chap 75:01 and will take effect on January 1, 2023."
- Finance Minister Colm Imbert