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Civil Service Association recommends that gov't abandon income tax plan

Published:Wednesday | March 23, 2016 | 3:00 PM

The Jamaica Civil Service Association (JCSA) was this morning meeting with the Government to propose that it abandon its plan to abolish income tax for persons earning $1.5 million or less.

The association is proposing instead that an across the board increase of the income tax threshold to $1 million be implemented.

The JCSA has already disclosed that some workers are not looking forward to a three per cent increase in salary they will be due come April 1, as the pay rise could push them above the tax exempt group.

The association’s head, O'Neil Grant, says while the tax promise by the Jamaica Labour Party (JLP) Government was targeted at public sector workers, the workers believe it could be bad for them in the long run.

 

Grant also says the long-term impact of the tax plan could be stagnation in the public sector as workers reject promotions to continue benefiting from the tax break.

 

President of the Jamaica Civil Service association, O'Neil Grant

Grant says the policy could also impact productivity as workers avoid working overtime for fear of pushing their earnings beyond the $1.5 million mark.

Grant was speaking on the programme Real Business on Power 106 FM this morning.

The plan to remove income tax obligations for people earning $1.5 million or less was an election promise by the JLP.