Tax expert Ethlyn Norton-Coke said while the full list of items which are to attract GCT was not yet available, it could be estimated that 50 per cent of the savings from the increase in the income-tax threshold would go back into taxes.

This figure would be applicable to those above and below the threshold.

Responding yesterday to workers who said that the increased income-tax threshold announced by Minister of Finance Audley Shaw was negligible, Norton-Coke told The Sunday Gleaner, "About 50 per cent will go back into taxation because of inflation, gas tax and additional GCT."

The income-tax adjustment is expected to be effected in two tranches, with the first coming on July 1, when the figure will increase to $320,000.

The second adjustment, on January 1, 2010, will see the figure move up to $440,000.

The last adjustment in the threshold was effected on January 1 this year, when the figure increased from $190,000 to $220,500. An additional 85,000 workers will benefit from the tax relief, bringing the total number of PAYE workers who will no longer pay income tax to 132,000.

What your take-home pay could look like

Scenario 1 for an individual earning $520,000 per year

Current take-home pay:

Approximately $35,500 per month

Take-home effective January 2010:

$41,300 ($5,800 increase per month or $69,600 per annum)

Scenario 2 for individuals earning $440,000 per year

Current take-home pay:

$30,900 per month

Take-home effective January 2010:

$34,300 per month or $411,600 per annum (an increase of $3,100per month).

Note: Employees will still be required to pay the other statutory deductions, such as NIS and NHT.