Jamaica Proposes Tax Relief for Victims of Hurricane Melissa

The Jamaican government has proposed an amendment to the Income Tax Act to grant tax incentives to residents affected by Hurricane Melissa. The draft bill was presented on 13 December 2025, following the Category 5 storm that struck the island’s southwest on 28 October 2025.

Finance Minister Fayval Williams said the amendment would exempt tax on earnings up to J$200,000 received by victims or on disaster allowances paid by employers to employees. Current legislation does not provide a tax waiver for such disaster payments, prompting the proposed change to fill the gap.

If enacted, the measure would allow employers to give allowances without tax liability for both parties, helping households recover more quickly and easing the post‑storm economic burden. The government will also require employers to report the allowances with supporting documentation to ensure the relief is narrowly targeted.