Several major revenue measures, which were announced in February by the Finance Minister, take effect today – April 1.
Heading the list is the increase in the Education Tax that has been increased by 0.5% to 3.5% for employers and 0.25 % for employees and self employed persons who will now contribute 2.25%.
This is expected to yield J$2.8 billion, which will help to address the financial shortfall at the Student’s Loan Bureau (SLB).
The tax on dividends paid by companies has also increased to 15% and should result in J$800 million in revenues.
The Government says this is part of efforts to stem revenue leakage that could occur with the wide disparity between income tax and tax on dividends.
Another J$1.2 billion is expected from the imposition of a levy on the taxable income of large unregulated companies. They include entities not regulated by the Financial Services Commission, Bank of Jamaica, Finance Ministry or the Office of Utilities Regulation.
The cost of importing bulk items has also gone up with the imposition of a Customs Administration Fee (CAF) on all imports except for charitable organizations and the bauxite sector.
Property owners will also have to start digging deeper in their pockets with new property tax rates. Properties with an unimproved value of up to J$100-thousand will attract a flat rate of J$1,000.
For those in excess of J$100 thousand and up to J$ 1 million there will be a 1.5% charge while there will be a 2% charge for properties with unimproved values over J$ 1 million
The other revenue enhancement initiatives include an increase in the local Stamp Duty rate and Transfer Tax on properties. This measure is expected to yield J$2 billion.
The decision to hike Stamp Duty and Transfer Tax on properties reflect an increase to 4% and 5% up from 3% and 4%. However, the adjustments will not be imposed on estates.
Arising from an amendment to the fee and gross profit structure for Betting, Gaming and Lotteries the Government is set to collect an additional J$1.5 billion this financial year.
The Simpson-Miller administration has projected that the taxes will result in an additional J$10 billion flowing into the country's coffers.
Customs Department opens Monday
The Customs Department will be opening its Collections and Accounts Unit in Kingston on Monday. This is to allow for the collection of fees for the C73, which is the authorization form that allows a customs broker to act on behalf of an importer.
Major Richard Reese, Commissioner of Customs, told RJR News that this should prevent a backlog at the Department's offices:
“Customs House will be open for four hours to facilitate processing of letters of authorisation by brokers. This facility allows brokers to clear good on behalf of their various importers that they represent. That will reduce the possibility of a backlog of customers come Tuesday morning,” he said.
All feeds
