JLP promises 15% income tax cut, senior benefits in election manifesto

The Jamaica Labour Party (JLP) has pledged to reduce the personal income tax rate to 15 per cent on a phased basis if it secures another term in government. The commitment was outlined in the party’s newly released 110-page election manifesto, I Choose Jamaica, The Next Chapter, launched Sunday night in Sam Sharpe Square.

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“We will build on our 1.5 [income tax threshold] … and embark on a disciplined, deliberate phased move toward a long-term base rate for personal income tax of 15 per cent,” the document states. Currently, Jamaicans pay a 25 per cent income tax rate, with earnings above $6 million taxed at 30 per cent.

The JLP says the reform represents a long-term vision to reduce the burden of direct taxes and shift towards a system more reliant on indirect taxation, while allowing “hardworking Jamaicans to keep more of what they earn.” The party argues this approach would broaden the tax net, promote fairness, and maintain economic stability.

The manifesto also highlights other proposed tax reforms. Among them, a plan to reduce and eventually eliminate the asset tax on regulated financial institutions “as fiscal space allows,” and the consolidation of four statutory deductions—Education Tax, HEART, NIS, and NHT—into a single payment to simplify payroll administration for employers and employees.

In March, the government announced a phased increase in the income tax threshold to $2 million over three years, continuing a policy shift that began with the significant jump to $1.5 million in 2017, fulfilling a 2016 JLP election promise.

Party leader and Prime Minister Andrew Holness also announced targeted tax relief for seniors. “For seniors aged 65 and over, we will exempt all employment and pension earnings from income tax where total income from all sources is $6 million or less per year, because we are honouring our seniors who have built Jamaica,” he told the rally.

Holness further promised a national health plan for seniors aged 60 and over, initially covering more than 400,000 people and providing benefits for 10 chronic illnesses. He said the plan would be expanded in phases, lowering the qualifying age to 40, then to 30, with the ultimate goal of universal health coverage.

“As we move along and we can secure the income, we will move the age lower … until it’s universal for all Jamaicans,” Holness said, stressing that the rollout would be done “in a way that will not bankrupt the country or cause you to have to pay more taxes.”