As a measure to ensure that the charge is equally applied across the tax base, the income levy will be applied to all income — with some minor exceptions — of taxpayers in the PAYE sector and those who are self employed. Equally, to address concerns of equity, this levy will apply to gross income before the application of a broad expanse of relieving provisions and specific exemptions provided for in the Income Tax Acts. Therefore, the income levy will apply on the full income from, for example, profits from woodlands, income from patent royalties or mining operations and the exempt earnings of writers, composers and artists. It is will apply to all income, before allowing double rent allowance or donations as an expense and before granting section 23 type reliefs or capital allowances and before the deduction of relief for pension contributions. It will allow for the deduction of normal expenses associated with a trade. Deposit interest will not be included as part of the income subject to the levy on the basis that other provisions relating to the increase in the rate of deposit interest retention tax or other tax charges will apply to such products.

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