Above: Grenada

By the Caribbean Journal staff

Grenada is planning to lower its income tax threshold, according to Prime Minister Dr Keith Mitchell.

Under the current tax regime, citizens earning in excess of $22,222 USD (EC $60,000) per year qualify to pay the 30 percent income tax.

Under the proposed changes, those earning in excess of $11,111 per year would have to pay the tax, although “not at the same rate as those who are currently paying,” Mitchell said.

For those making less than $22,222 per year, the tax would be 15 percent, he said.

“As a consequence, Government has asked all local banks to be sensitive to this situation,” Mitchell said. “The banks have assured Government that it will work with its customers where necessary.”

Grenada is in the midst of a what Mitchell is calling a “homegrown” economic programme aimed at righting the country’s fiscal ship.