Tax expert cautions businesses set to benefit from planned increase in GCT threshold

 

Tax expert Allison Peart says the government's plan to increase the General Consumption Tax (GCT) threshold for companies from $10 million to $15 million per annum will reduce the administrative burden on the entities.

 

Thousands of businesses are expected to benefit from the change announced by Finance Minister Fayval Williams during the opening of the Budget Debate in the House of Representatives on Tuesday.

 

Ms. Peart explained that businesses earning below $15 million in sales will no longer be required to be registered taxpayers.

 

She said while this is a plus for people who find the monthly GCT filing tiresome, businesses that are not registered cannot claim the GCT that they have spent. 

 

"Unless they allow you to voluntarily register if you choose, let me tell you the downsides: if you don't register you can't claim the GCT you've spent. So it is a good move for compliance because small businesses, if you're making $15 million, it's one less headache every month to have to charge GCT and file the monthly return. However, the GCT that you incur on your expenses you won't be able to claim because you're not registered," she reasoned.    

 

Ms. Peart was a guest Tuesday on Radio Jamaica's Beyond the Headlines.