PM announces tax break and minimum wage increase for 2024

The salary threshold below which no personal income tax is charged will be increased from the current $22,000 annually to $25,000 in January 2024.

Also in January 2024, there will be an increase in the minimum wage paid to workers consequent upon the full review of a report from the Wages Council, which is in progress.

These were two of the 16 announcements made last Friday, Independence Day, October 27, by Prime Minister Dr Ralph Gonsalves.

The announcements were made at the Victoria Park during the Prime Minister’s address on the occasion of the 44th anniversary of Independence. The address was dubbed, “SVG is on the right track despite external burdens and some domestic challenges”.

“Workers will pay less taxes. It will cost the Treasury $4.5 million annually,” Gonsalves said about the move to raise the personal income tax threshold.

He also announced that as of January 2024, 750 nurses, nursing assistants, and nursing aides, will be paid a monthly supplementary, non-taxable, income, for an initial six-month period, amounting to five per cent of their salary. This is in an effort to ease 16 specific challenges which they currently face and will cost the government approximately $1 million.

It was also revealed last Friday that the ON-SITE programme under which the government places employees at its own expense, in the private sector, for fixed time periods will be extended with a fresh batch of employees into the years 2024 and 2025.

Gonsalves noted that this is subject to its usual annual review of the programme’s efficacy and a review will be done thereafter to address a possible upgrading and reclassification of these posts in the nursing profession.

“Let us big up the nurses,” Gonsalves said before announcing that there will be a continuation of relief granted to domestic consumers of electricity to pay no Value Added Tax (VAT) on their bills for any consumption below 250 units (kilowatt hours) per month.

The Prime Minister’s announcement also revealed that local aspiring entrepreneurs will continue to benefit from the Promoting Youth Micro Enterprises (PRYME) grant, as 44 additional PRYME grants to micro-entrepreneurs amounting to $350,000 were being issued on the occasion of this year’s Independence anniversary.

“This brings the number of PRYME grants to more than 1,300 at a value of $6.5 million. The programme continues in 2024 and 2025,” Gonsalves stated.

National scholarships were also mentioned on Friday, with the Prime Minister noting that on Tuesday October 24, 66 national scholarships, national exhibitions, special awards and bursaries for university education were issued on the basis of the results of the 2023 CAPE and Associate Degree results for students at the St. Vincent Community College.

“This package of awards is valued at over $20 million. In this year, a record number — 26 — of five-year, fully-funded national scholarships were awarded; each of these carries a maximum price tag of up to $600,000.

“This government is committed to young people and the Education Revolution. More and more scholarships and other financial supports are available for our students going to College or University.

“Let’s big up our young people, so bright overwhelmingly, so focused, and so committed,” Gonsalves said.

Farmers were also mentioned in the 2023 message, noting that the 1,185 farmers who owe the state owned Farmers Support Company, in the aggregate, $4.5 million will receive a 50 per cent waiver on the principal sums owed, and a full waiver on all the interest.

It was also noted by Dr Gonsalves that he has asked for a full and complete review of all debts owed to the Kingstown Town Board by vendors, with the intention to provide relief and waivers.

“The relevant details will be provided in Budget 2024 early next year,” Gonsalves promised while adding that there will be a full and complete review of all the debts owed by patients and their families to the Milton Cato Memorial Hospital, and all other hospitals here up to the October 27th, 2022, with the intention to provide relief and waivers.

“The relevant details will be announced in Budget 2024 early next year,” Gonsalves told the gathering at Victoria Park.

It was also noted that the government intends as of January 1, 2024, to reduce further the extent of the interest rate, and provide additional relief, to students who borrowed monies from the state-owned Student Loan Company to finance their university education.

“The details will be made available in the Budget 2024,” the Prime Minister said.

Other announcements included as of January 1, 2024, a one-time duty reduction for new tires for all motor vehicles will be available as a road safety measure while the existing time-bound duty-free concession on cement will be extended for another year, up to the end of 2024 and this will continue to ensure that cement in St Vincent and the Grenadines is the most affordable in the OECS.

Another welcomed announcement is that the annual duty-free concession on Christmas barrels begins on November 15 and runs until December 31, 2023.