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Increasing payroll tax exemption to $15K being explored- Premier Wheatley

- said Government looking to possibly share burden of Minimum Wage increase with businesses
Several areas to cushion the impact of a Minimum Wage increase on businesses are being explored, including increasing payroll tax exemptions, Premier and Minister of Finance Dr the Honourable Matalio D. Wheatley (R7) has said. Photo: VINO
The Ministry of Financial Services, Economic Development, and Digital Transformation has announced that the increase in the minimum wage for the Virgin Islands (VI) which was scheduled to take effect from November 30, 2024, has been postponed. Photo: Government of the Virgin Islands
The Ministry of Financial Services, Economic Development, and Digital Transformation has announced that the increase in the minimum wage for the Virgin Islands (VI) which was scheduled to take effect from November 30, 2024, has been postponed. Photo: Government of the Virgin Islands
Increasing the payroll tax exemption is being looked at as the government continues to deliberate on implementing the minimum wage increase in the Territory. Photo: Internet Source
Increasing the payroll tax exemption is being looked at as the government continues to deliberate on implementing the minimum wage increase in the Territory. Photo: Internet Source
ROAD TOWN, Tortola, VI- Several areas to cushion the impact of a Minimum Wage increase on businesses are being explored, including increasing payroll tax exemptions.

This is according to Premier and Minister of Finance Dr the Honourable Natalio D. Wheatley (R7) while addressing the issue of Minimum Wage during his first press conference for 2025 today, Thursday, January 23, 2025.

The Wheatley government had announced an increase in the Minimum Wage to $8.50 per hour effective November 30, 2024, however, it was subsequently postponed.

'I wanted to take another look'

“We had a change in minister. Of course, when I came in as minister, I wanted to take another look at the issue of the Minimum Wage. 

Then Minister for Financial Services, Labour and Trade Hon Lorna G. Smith, OBE, (AL) led the charge for the increase in the Minimum Wage. Hon Smith was removed from Premier Wheatley’s Cabinet of Ministers in October 2024. 

“So we are just about to conclude the deliberations we’re having on that and we’ll be able to say something more to the public,” Dr Wheatley said. 

Payroll tax exemption may be increased- Premier

Dr Wheatley said he did apologise to the public for the delay in implementing the Minimum Wage increase adding, “I do reiterate that apology again, of course, the timing was not ideal.”

He explained that when the Minimum Wage is increased as significantly as it was, there is always the potential for those costs to be passed on to the consumer.

“I wanted to ensure we had the proper mechanism in place to be able to deal with potential increases in prices including…that basket of goods,” he stated.

The Premier said the government is also exploring “sharing the burden with the businesses so that means potentially increasing the payroll exemption from [ten thousand dollars]; we are looking potentially to [fifteen thousand dollars],” Dr Wheatley revealed.

Currently, each employee in the Virgin Islands is entitled to an annual tax exemption of the first $10,000.00 earned remuneration.

It was in April 2024, that Opposition Leader Hon Ronnie W. Skelton (AL) recommended that employees earning less than $23,000.00 annually be given an annual payroll tax exemption of the first $15,000.00 earned.

Meanwhile, Premier Wheatley also reminded that a phased approach will also be used for the implementation of a Minimum Wage increase.

Dr Wheatley said he would be speaking with the public “very shortly” once deliberations have concluded.

20 Responses to “Increasing payroll tax exemption to $15K being explored- Premier Wheatley”

  • East Side (23/01/2025, 14:45) Like (12) Dislike (10) Reply
    Really? You broke and reducing revenue.
    Lord have mercy.
    • January done. (23/01/2025, 16:48) Like (13) Dislike (2) Reply
      When again. Mr. Premier, I love you, I support you, I defend you. But I am so disappointed you didn't put the effort in into bringing some relief to the people since that you stopped the minimum wage..I am not seeing the compassion, empathy and effort for the people..
    • We Suffering. (24/01/2025, 06:00) Like (6) Dislike (7) Reply
      Hope this is just for people making under $40.000 annually, the one that really wanted and would have benefitted from the minimum. Wage. . Hope the Rich and the big salaries don't be a part of this if it should happen. We know, only Trump does what he says.
      • LOL (24/01/2025, 23:36) Like (0) Dislike (1) Reply
        Sounds like you make just under 40k. I hope you get a raise to $40,500 and then see how you like it.
    • Jackie Long (24/01/2025, 07:07) Like (2) Dislike (0) Reply
      Nah, we not broke, we increase our salaries last yr and to make it look good we give the public service some too.
  • fedup (23/01/2025, 15:18) Like (14) Dislike (2) Reply
    I have NO confidence in this government, they are under whelming in every aspect, they don't inspire any thing positive.
  • BVI/UK (23/01/2025, 15:50) Like (21) Dislike (1) Reply

    This primer is just bulls*** the ppl. Something already pass in House of Assembly. What do it have to do with a new minster in office. Ppl are not foolish. It's either the increase or no increase. Just like y'all give yourself the greedy bill without consideration for the ppl.

  • Politics. (23/01/2025, 16:16) Like (20) Dislike (0) Reply
    It should have been done from this January. He is going to wait until an election year to do things to benefit the people hoping the people will fall for their political games.
  • yesss (23/01/2025, 16:26) Like (15) Dislike (1) Reply
    Increasing to 15K is a wonderfull move. Small businesses can now stay open. Real talk..
  • Native Senior Citizen of the British Virgin Islands (23/01/2025, 19:34) Like (0) Dislike (0) Reply
    In reference to the Topic Issue: False explorer, stop lying to the BVI government employees. In many and my opinion you lied
  • Well Sah (23/01/2025, 21:16) Like (4) Dislike (2) Reply
    It’s best to let the UK take over this clown show of a government. I’ve never seen administration as pathetic as this one. No pride and no shame at least President Trump is honest compared to this poppy show.
  • resident (23/01/2025, 21:39) Like (3) Dislike (0) Reply
    And, when will we get the owed increments???? Please, don't forget that.
  • Things to think about (23/01/2025, 21:55) Like (1) Dislike (2) Reply
    I wish government can would more innovative and pitch and ask civil servants if they would like to invest a percentage of their pension in the redevelopment of prospect reef after the proposal of cost for construction from different companies, proposal for the type of hotel( sports tourism to accommodate athletes from other countries, a hotel like sandal's to vacation at, even a water park on one of the other small islands). It would be nice if the pension for the civil servants was generated from an investment rather than the budget of the country. Iwish the government would think about allowing it's workers to be giving the opportunity to invest their pension and/or social security funds but only allowed to when personal provide a proper layout of investment plans and if approved sign a contract stating they except full responsibility of any lost of funds through investment and government is not held liable for the lack of fund when collecting retirement and social security. And not seeking government to replacing fund from person bad investment
  • Yeah Right (23/01/2025, 23:20) Like (3) Dislike (0) Reply
    That’s all it will be, another look. How stupid are people? If you make minimum wage, you won’t make $15,000 a year so doing that for them will be pointless. At $6 an hour the most you will make is $12,000 a year. Working 2 minimum wage jobs may get it done..Where is the help in that?
  • Ridiculous (24/01/2025, 06:17) Like (4) Dislike (0) Reply
    This will take many months to sort. By then many people will have e passed tge $10000 and be paying tax. Will cause an enormous confusion. Should have been planned and become effective 1 January. This should have been dealt with months ago.
  • Econ (24/01/2025, 07:11) Like (3) Dislike (1) Reply
    Fix the pensioners first then if you have any $$ left maybe the minimum wage.
  • Yes (24/01/2025, 07:44) Like (6) Dislike (0) Reply
    We need price control. We getting raped
  • smh (30/01/2025, 15:17) Like (0) Dislike (0) Reply
    We definitely need price control. By time you finish paying these expensive apartment rent and buy groceries the money done.

    If you Fix the issue mentioned above, you can then increase the minimum wage and fix the tax exemption for those who make earnings less the $23000.00 annually.

    If you don't have price control they'll raise the prices again.


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