The 2019 National Budget Volume 1 Economic and Development Policies states that the relief is intended to address bracket creep and also increase working incentives for low to lower-middle income earners.
The 2019 Budget states that while there is significant need to provide relief to the formal sector income earners, the cost of such relief also presents a challenge.
To strike a balance, the budget introduces a modest reduction to PIT. This includes:
i) An increase in the tax free threshold to K12, 500; and