Senate Approves Income Tax Exemption Threshold Increase to $29,000

Yesterday, the Senate approved a new income tax exemption threshold, raising it from $26,000 to $29,000. This change means that workers earning less than $29,000 per year will no longer have to pay income tax. 

The Senate discussed various tax laws, including the Income and Business Tax (Amendment) Bill of 2024, which was introduced by the Leader of Government Business, Senator Eamon Courtenay. He explained that this measure would help workers by “exempting a significant number of people from having to pay income and business tax.”

Chris Coye, the Minister of State for Finance, stressed the impact of the change, stating that it would benefit over 2,800 public officers whose average income is between $26,000 and $28,000. These workers will no longer have to pay taxes, effectively increasing their net take-home pay by $900 starting January 1st.

Coye also highlighted how the current tax structure often leads to tax evasion, as workers receiving salary increases end up with lower take-home pay due to higher tax rates. The new threshold aims to reduce this issue and provide more financial relief for hard-working Belizeans.

 

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