Major tax breaks coming

[Lazie]

CONSUMERS could see the General Consumption Tax (GCT) they pay on goods drop to 12.5 per cent come next January. However, they will have to give up on the number of goods that they currently pay no tax on at all — which may include key food items that make up the staple of even the lowest income earner.

Yesterday, in Parliament, Finance Minister Audley Shaw tabled a raft of give-and-take tax-reform measures, which outline plans to effect changes to the GCT, implement a new tax at the ports while lowering common external tariffs (CET) on hundreds of items, lower personal and corporate income tax rates, and implement a new minimum business tax.


The Green Paper titled Tax Reform for Jamaica, said that most of the measures would require further assessment while it provided no set determination on the degree of change, but instead provided several alternative scenarios for each measure.


Read more: http://www.jamaicaobserver.com/news/...#ixzz1M8oLjc3K

[Lazie]

The issue of PAYE taxpayers having to file individually is certainly going to cause some fuss.

[Lazie]

Reactions to proposed GCT reduction and increased income tax

Two of the country’s financial analysts are expressing different views this afternoon in regard to a Green Paper on the reform of the tax system.

Finance Minister Audley Shaw tabled the Green Paper in parliament yesterday.

The document proposes a reduction in the General Consumption Tax (GCT) as well an increase in the income tax threshold, among other measures.

A reduction in the GCT also means that the list of items exempt from the tax will be broadened.

Financial Analyst Dennis Chung said he believes a reduction in the GCT will benefit consumers.

On the other hand, Ann Shirley is of the view that if some of the new measures are approved, they will have a negative impact on Jamaicans.

Although Shaw indicated that the government will lose about $16. 2 billion if the GCT is reduced, Chung said revenue will actually increase in the long-term as consumers will have additional disposal income.

Chung also said he is hopeful that the Government will also cut the GCT on locally produced goods, and maintain the same level of tax on imported goods to provide an incentive for more local production.

While Shirley agreed with Chung, that the reform of the tax system is necessary at this time, she has questioned the timing of the implementation of some measures.

She also expressed concern about the impact of the measures on the poor.

Shirley has called for the Government to hold discussions with Jamaicans on the specifics, and the implications of the measures to be implemented under the tax reform process.

monique.grange@gleanerjm.com

[Lazie]

Manufacturers oppose tax reform measures

Debbie-Ann Wright, Assistant News Editor

The Jamaica Manufacturers’ Association (JMA) is against some of the tax reform measures outlined by Finance Minister Audley Shaw, in a Green Paper he tabled in Parliament yesterday.

The document proposes a reduction in the General Consumption Tax (GCT), as well as an increase in the income tax threshold among other measures.

However, JMA president, Omar Azan, said some of the measures seem to favour the trading of goods rather than the production and exports of products.

Azan noted the proposed implementation of a customs administration fee and advanced GCT, is of concern to the association.

He said these measures will negatively affect the cost of production and manufacturers’ cash flow.

The proposal for a 20 per cent reduction in the common external tariff on competing manufactured and agricultural items, according to Azan, has the potential to cause harm to these fledgling industries.

Azan asserted he would prefer to see the four per cent reduction in GCT carried out over a three year period.

The JMA president has also sought to clarify that the JMA did not sign off on the proposals presented in the green paper.

debbie-ann.wright@gleanerjm.com