Here are seven things you need to know from Jamaica’s new budget 2025 that will put more money in your pocket.
Finance Minister Fayval Williams recently made her first budget presentation as Jamaica’s first female Minister of Finance . She announced a number of things that will affect both individuals and businesses.
Number 1 - personal income tax is being abolished for everyone who earns less than 2 million Jamaican dollars. The current threshold is 1-point-7 million. That’s going to 1-point-8 million this April, then 1-point-9 million next year, and 2 million in 2027. I have another video explaining more about this, so check that out.
Number 2 - GCT on electricity is being reduced from 15 percent to 7 percent. Prime Minister Andrew Holness initially announced this in November, but Minister Williams has now given us a start date of May 1.
Also on the topic of electricity, the Government is setting aside one billion dollars to help the first 20 thousand people who sign up for pre-paid power from JPS. The money will be used to help the new customers with wiring and inspection. They’ll also get 4-thousand dollars free electricity credit a month for six months.
Number 3 - Micro-insurance. This should help Jamaicans who can’t afford traditional health insurance. According to the minister, one insurer has already said it's possible to offer a 500,000-dollar policy for as low as 250 Jamaican dollars a month. That’s less than two dollars US.
Number 4 - Longer repayment periods for student loans. You’ll now have up to ten years to repay, up from 5 and 7 years. This will bring down the monthly payments and make it easier on young people just entering the job market.
Number 5 - The establishment of a micro stock exchange. This is big news for small and medium-sized businesses that need capital but don’t meet the minimum to apply to the Junior Market. SMEs would be able to raise between 10 and 50 million dollars on the micro exchange. The JSE says it’s already identified 250 companies that are ready to take up this opportunity.
Number 6 - If you’re a small business owner, this one is also for you. The government is raising the GCT exemption from $10 million to $15 million. This means that your business won’t have to collect GCT unless it earns at least $15 million a year.
And number 7 - Good news for Jamaicans living abroad who invest in Jamaica. The dividend tax rate for non-residents is coming down from 25 percent to 15 percent. For non-resident companies, it’s coming down from 33 and a third percent to 15 percent.
There were a bunch of other announcements too, but those were the biggest ones. We’re expecting to hear more from Prime Minister Andrew Holness when he makes his presentation on March 20.
And that’s the bottom line.
What was the highlight of the Finance Minister’s opening speech for you?