Upward onward: Bajan excellence 2030

Personal allowance for pensioners increased from $40,000 to $45,000 from income year 2023 Measure announced Effective from income year 2023, the personal tax allowance for pensioners will be increased from $40,000 to $45,000. Our view: This increase of $5,000 will provide pensioners, whose pensions previously exceeded $40,000 per annum, minimal relief on paying additional taxes on pension income between $40,000 and $45,000. Up to income year 2014, employees were able to claim a tax deduction for contributions paid to approved pension plans up to a certain limit, but would be subject to income tax on the pension received in the future. With the removal of this allowance from income year 2015, pensions from approved pension plans are effectively taxed twice. We would like to see the reintroduction of the tax deduction, as this would encourage employees and self-employed individuals to make contributions to such plans and provide for their own retirement rather than relying solely on the national insurance fund. PwC | 2023/24 Budget review | Barbados 10

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