By the Caribbean Journal staff
Grenada’s new income tax regime has officially taken effect, the government announced Wednesday.
The new tax laws have lowered the country’s income tax threshold.
According to the new regime, the first $8,889 USD of chargeable income is taxed at a rate of 15 percent, with any amount in excess of that taxed at a rate of 30 percent.
Chargeable income means any income over $1,111 per month or $13,333 per year.
The government said that means that people who earn up to $1,111 per month or $13,333 per year will not pay income tax, as that first $13,333 is not chargeable.
For companies, the rate is 30 percent, according to the new regime.
Grenada has embarked on what Prime Minister Dr Keith Mitchell has called a “homegrown economic programme” to improve the fiscal situation in the Eastern Caribbean country.