BVI News

Gov’t open to considering proposal to increase tax threshold

Premier Dr Natalio Wheatley.

Premier and Minister of Finance Dr. Natalio Wheatley has indicated that his government is open to considering a proposal to increase the tax exemption threshold for low-income earners in the territory.

The tax exemption threshold allows employees to earn their first $10,000 annually untaxed.

The proposal to increase the tax threshold for minimum wage earners from $10,000 to $15,000 has been discussed recently, with many stakeholders advocating for the change to provide relief to low-income workers. In response to this proposal at a recent press conference, the Premier noted, “It is something that I’ve heard about. I think we can consider that proposal within our general proposals for tax-related [issues].”

During the press conference, the Premier was asked about Deputy Premier Lorna Smith’s comments on the matter. Smith reportedly expressed support towards reducing the tax threshold for some earners. She stated, “I understand what they are getting at, and I do agree. So if there is a way that we can do it so that it impacts persons who are at the higher end, we should do it.”

However, Premier Wheatley refrained from endorsing or rejecting that idea outright. He emphasised that he did not want to respond to specific proposals because he did not want to make policy ad hoc. He also alluded to the need for a thorough review and consultation before making decisions.

“Any policy proposal, I would hope to have the support of the Ministry of Finance, the soon-to-be-set-up Economic Advisory Council or to be reinstated, and conversations with the public about any policy proposals,” he said.

The Premier also denied that Smith was making policy ad hoc, explaining that she has been a long-standing civil servant and has his greatest respect. “Certainly, while she may comment on a particular issue and give a view, when it comes to implementing policy, I think she’s very responsible and goes through the proper channels,” the Premier said.

Meanwhile, the Premier highlighted the importance of considering the broader economic context and ensuring that the government can continue to provide essential public services. While underlining that these are challenging times, he argued that there are instances where higher earners may sometimes be required to contribute more taxes and low-income earners may need to receive some “government benefit.”

In the process, the Premier emphasized the need for a balanced approach. “We have to find as many ways as possible to shield persons or blunt the impact of the high inflation that we’re experiencing right now,” the Premier said. “But we also need to find ways to have revenue to deliver public services. So there’s always a balance that has to be struck.”

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20 Comments

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  1. WALK THE WALK says:

    THIS SPREEMIER IS ALL TALK AND NO ACTION

    Like 8
    Dislike 1
  2. Laslow says:

    Why now after the public suggested it? The public suggested this after the house of assembly made their decision to raise minimum wage. Why didn’t anyone in the house of assembly think about this before coming to their conclusion?
    Only now after the damage is done, after people on the street suggested it. That’s so sad.

    • Sara says:

      The leader of the opposition talked about this on the campaign trail but nothing yet

    • @laslow says:

      It is incorrect to say the HOA did not consider raising the threshold. The leader of the Opposition and other members of the Opposition suggested this as a consideration. Given that the Government has the majority in HOA, eventhough the Opposition has indicated that raising the minimum wage without simultaneously increasing the threshold along with other measures, orimplementing the latter if the attempt was really to bring relief to minimum wage workers, the increase would pass without the Oppositon’s endorsement.

  3. WHO'S IDEA ❓️ says:

    we all wants to know if it’s going to make any difference

  4. Not going to fly says:

    That would reduce the illegal income of those employers retaining their workers deductions NHI & NI not paying into the government system because they’re never being pursued by government for those payments.

    Like 12
  5. OPEN to it says:

    open to it

    and saying you will do it

    are two different things

    but run your games boi

    get those political points

    Like 12
  6. @ NOT GOI G TO FLY says:

    Well you said it , and I have said also , that evil Vincent was watching expats work honestly for yhe money and he was scooping them like a chicken hawk to see what all they do with with their own money and plot with holy bandrew on how to double tax them using money gram as a front and even up to today the fmthose dirty minded employers are left untouched from not paying their fair share of TAXES to the same he is in , they are birds of the same feather

  7. suggestion says:

    exempt the initial $20k

    Increase taxes over $150k/year

    Easy

    Like 11
    Dislike 4
  8. Higher earners duck says:

    IB he means you , local business need not worry you just ignore him anyway.

  9. TurtleDove says:

    Just do it!!!!!!!!

  10. Needed says:

    New increase shouldn’t be for everyone. The additional saving should be lower income earners only. Those making less $24,000. Annually.

  11. Rt says:

    Dis m f mashup the country

    Like 2
    Dislike 1
  12. In all honesty says:

    I think it’s a bad idea at this time

    Like 1
    Dislike 2
  13. Hello says:

    Make this heck for everyone, not just low income people, kmt cost of living affecting everyone.

    Like 3
    Dislike 1
  14. SMH says:

    CHUPES I am so tired of this poppy show. His mouth just keeps uttering non viable statements and nothing to support the needs of the people.

  15. The Middle Class says:

    The middle class does not get a break , eventually there will be no middle class. It should apply to the middle class and low earners as well. The high earners (100k +) should to be taxed at a higher percentage and not the same as middle and low class.

    Like 2
    Dislike 1
  16. SMH says:

    What about also considering a better tax system for person who make more than $50K. These person should pay more percentage not the same 10% as the low income. 10% of low income is alot for us. However 10% of $10K or $12K is nothing compare to the overall amount.

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