Gov’t proposes $5,000 payroll tax rebate
Premier Dr Natalio Wheatley
The government has proposed a $5,000 payroll tax rebate for lower-income earners at the end of 2027, with Premier Dr Natalio Wheatley saying the measure requires Cabinet and House of Assembly approval.
Dr Wheatley announced the proposal during his 2027 Budget Address, where he outlined plans for social protection, public assistance, and household support in the Virgin Islands.
The Premier referred to discussions about increasing the payroll tax exemption before setting out the proposed rebate.
“The idea of raising the payroll exemption has been discussed in recent times,” Dr Wheatley stated.
He said the government would “introduce a $5,000 payroll tax rebate at the end of 2027”, subject to the required approvals.
Dr Wheatley did not specify an income threshold for eligibility, explain how the government would calculate individual rebates or give an overall cost for the measure in the announcement.
The proposal follows earlier discussions about increasing the amount workers could earn before paying payroll tax. Earlier this year, Dr Wheatley’s administration discussed raising the annual tax exemption threshold from $10,000 to $15,000, with January 1, 2027 as a possible start date.
At that stage, the Premier said the government still had to review the proposal with the Financial Secretary to establish whether it could afford the change.
In the budget address, Dr Wheatley placed the rebate proposal alongside measures his government had taken over the preceding four years. He cited increases in public assistance benefits, the minimum wage and pension benefits for government retirees, as well as electricity subsidies and duty concessions.
“We raised public assistance benefits. We raised the minimum wage,” Premier Wheatley stated.
The government projects payroll tax revenue of $77 million for 2027, compared with a revised projection of $72.6 million for 2026, according to the address.
The Premier also announced a target to reduce grant processing times through the government’s digital social protection system.
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You cheated the people with the Minimum Wage while all the Greedy HOA13 gave themselves massive raises and benefits.
Chauffeurs for life now too. My application is in!!!
It was to go from $6.00 per hour to $8.50 per hour, effective November 30, 2024.
Natalio stopped this. It is worse though.
Minimum Wage Advisory Committee (the Advisory Committee) recommended a minimum wage increase from $6.00 to $9.00 per hour.
But Natalio did not follow that Committee despite saying that not following Committees is bad practice. (Of course that would be only when the Governor does the same.)
No Natalio you did not raise the Minimum wage properly as recommended.
But you did reward yourself handsomely!!
You can’t arbitrarily set an earnings threshold and give everyone under that a $5k payroll tax rebate or you end up with someone earning $1 more than another yet taking home significantly less. Numbers really aren’t this mans strong point. We need an overall increase in the tax free limit for all or a tiered system if he wants to reach the lower income people. It’s not difficult!