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Promoters brace for tax pinch

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  • Promoters brace for tax pinch

    Promoters will also be feeling the pinch of new taxes as of January 1.
    Yesterday when the new taxes were announced, entertainment was right in the mix of things. Along with salt, onions and bread, activities for which an admission fee is charged by any cultural or other organisation, will now be taxed.

    GT Taylor, the promoter of Jagra GT Christmas Extravaganza that will be held at Independence Park in Black River, St Elizabeth, on Christmas Day, was quite upset about the new development.
    "I don't mind paying taxes 'cause they keep the country growing. But they must give support also to the entity that they are going to tax," Taylor told THE WEEKEND STAR.
    "I just want to see where it is going and what it is doing. I don't see what it is doing where entertainment is considered. Entertainment is already being pressured and you are looking more money from it."

    unfair to the promoters
    He said that it is unfair to the promoters, as their events are being locked off by 2 a.m. and they are losing money as a result. This, he says, is because people do not spend as much or even go to events early. And he said, increased and new taxes would only cut down on the number of events that are held as well.

    Hence, GT said some promoters will have to resort to increasing the cost to enter their events.
    "You have to think about the patrons, can they afford it? You going to have to put it on at the gate. I am worried about the patrons and myself too, if I can stay in the business," he said.
    But increasing admission fees is not an option for reggae artiste Tony Rebel, who is the promoter for Rebel Salute, an annual show that is held in January.

    "Yuh can't charge more. How can we do that with what is happening? We already undercharging people 'cause they can't afford it. It will be totally difficult. Yuh can't kill the goose that lays the egg," Tony Rebel told THE WEEKEND STAR.
    He said for the past four years the cost to enter his event has been set at $1,500. In addition, he said he already has to pay income tax and GCT for products and services used to host the show.

    As a result, Tony Rebel said it will be very hard to host events.
    "That's not good 'cause sometimes when you do a show yuh not even break-even. If out of that you have to pay GCT, you going to be in a serious losing position. We haffi go lobby bout that. It ago hard."
    It will also be a task for party promoters.
    "That will raise your expenses. You already have to pay GCT on service providers and now you going to feel it on income generated. And, at a lot of parties you don't even make any money," said one party promoter, who requested anonymity.

    Meanwhile, GT Taylor had further gripes. For Independence Park in Black River, he said that hosting an event there is already a burden on his pocket. So, paying additional taxes would be even more pressuring. He said it is unreasonable to pay $130,000 for a government-owned venue and he will have to clear the grounds, put in a stage, get additional bathrooms and lighting and fix the fences.
    "They gonna charge me GCT for a place to put patrons in and it is not adequate. I will have to find all the money to put in the necessities," he told THE WEEKEND STAR.

    http://jamaica-star.com/thestar/20091218/ent/ent1.html
    "Jamaica's future reflects its past, having attained only one per cent annual growth over 30 years whilst neighbours have grown at five per cent." (Article)
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