By Belize Live News Staff: The Senate has approved the Income and Business Tax (Amendment) Bill of 2024, which will increase the Personal Allowance for Employed (PAYE) threshold from $20,000 to $29,000. The move, aimed at reducing the tax burden for thousands of Belizeans, was introduced by the Leader of Government Business and supported by the Minister of State for Finance.
Eamon Courtenay, Leader of Government Business, highlighted the importance of this adjustment, stating, “By raising the threshold, we are exempting a significant number of petitions from having to pay income and business tax. More importantly, we are addressing anomalies in the tax structure where some workers were earning less take-home pay after salary increases due to higher tax brackets.”
Chris Coye, Minister of State for Finance, elaborated on the impact of the measure. He noted that this change would provide immediate relief to over 2,800 employed individuals, effectively increasing their take-home pay by $900 annually starting January 1, 2024. The adjustment is particularly beneficial for public officers, whose average incomes often place them just above the current threshold. “The average income of a public officer is between $26,000 and $28,000. Right now, they’re paying taxes, but they will no longer be taxed under this new threshold,” Coye said.
He further explained that the current tax structure pushes some employers and employees toward tax evasion. By regularizing the system and lowering exposure to higher tax payments, the government aims to create a fairer and more equitable tax environment. This adjustment is expected to benefit over 5,000 individuals, putting an average of $1,000 in additional take-home pay into their pockets annually.
The bill represents a significant step toward addressing longstanding inequities in Belize’s tax system while providing tangible financial relief to the working population. The government emphasized its commitment to implementing policies that directly improve the standard of living for Belizeans.
