- The Government is continuing the implementation of tax reforms, deemed critical to fostering sustainable inclusive economic growth in Jamaica. Among the initiatives Prime Minister, Dr. the Most Hon. Andrew Holness, indicated is the consolidation of payroll taxes into a single deduction system, with a target implementation date of January 2026.
- “By [then] we should have a single social contribution payroll system established. But I’ve given… an earlier deadline to make sure that the system is actually up. So, we are now well on our way to having it done,” Dr. Holness stated. He was addressing the Jamaica Stock Exchange (JSE) Investments and Capital Markets Conference at The Jamaica Pegasus Hotel in New Kingston on Tuesday, January 21, 2025.
- PM Holness also mentioned plans to revamp the urban renewal tax credit framework, to attract increased investments in underserved communities. He noted the Administration’s focus on, establishing new urban centres in each parish to transform them into economic hubs.
- Meanwhile, the Administration is exploring a further increase in the threshold at which small businesses must register for General Consumption Tax (GCT), following a previous increase from $3Mn to $10Mn in 2019. Additionally, there are also plans to incentivise Jamaican companies, currently domiciled overseas, to return their operations home.
- PM Holness also advised that the Government is expanding online tax payment systems and administration services to enhance efficiency.
- Overall, he emphasised the importance of reforming Jamaica’s tax system, including Customs, as a cornerstone of economic recovery and development, citing this as “a critical focus of our Government”.
(Source: JIS)