Tax Changes that will Affect Your Jamaican Business

Excerpts from ConsumersAffairsJamaica.gov.jm

As part of his Budget presentation tabled in Parliament on May 24, 2012 and the revised Budget tabled June 6, 2012 (following consultations with stakeholders) Finance Minister, Dr. the Hon. Peter Phillips announced a number of revenue measures. These included tax measures for GCT which would impact the general public as follows:

1. Reduction in the standard rate of General Consumption Tax (GCT) from 17.5% to 16.5%
In keeping with the Government of Jamaica’s commitment to the tax reform and ensuring a reduction of rates, the standard rate of GCT payable in respect to taxable goods and services was reduced by one-percent (1%) point effective June 1, 2012. Consumers will therefore pay one-percent (1%) less when they buy taxable goods and services.

2. Partially widen the GCT base
In an effort to broaden the tax base and reduce the administrative issues being experienced, several items previously listed as exempt or zero-rated will now attract GCT at the standard rate of 16.5%. Consumers will now pay GCT on a wider range of goods and services.

The items listed below are now taxable at the standard rate as at June 1, 2012.

Flavoured milk, milk based products, condensed milk and milk substitute
Corn beef (canned)
Pickled mackerel, herring, shad, dried salt fish
Buns, crackers (except water crackers), biscuits (salted and unsalted)
Eggs
All patties
Rolled Oats
Live birds, fish, etc.
Syrup
Animal feeds, pet food.
Planting materials including cereals and seeds in their natural state, dormant flower bulbs, corns, roots
and tubers and nursery stock, vegetable plants and live trees
Surgical gloves, including disposable, sterile and those made of latex rubber

Read more: ConsumersAffairsJamaica.gov.jm