GCT on Raw Foodstuff to Be Removed

The General Consumption Tax (GCT) on all raw foodstuff, imported or domestic, will be removed.

Finance and the Public Service Minister, Dr. the Hon. Nigel Clarke, made the disclosure while opening the 2024/25 Budget Debate in the House of Representatives on Tuesday (March 12).

The measure, which will take effect in the first quarter of the new financial year, is in keeping with Jamaica’s trade obligations.

“The Government also sought to deal with the issue of the rate of the GCT charged on imported raw foodstuff and the fact that no GCT is charged on the domestically produced raw foodstuff.

“The intention of this policy, at the time, was to bolster domestic production and act as a safeguard for domestic industries and markets.

Unfortunately, this policy could be interpreted as government-sponsored protectionism and distorts the conditions of competition between imported markets,” Dr. Clarke told the House.

This measure will be revenue negative and will result in government foregoing $2.4 billion in revenue.

Meanwhile, the Minister also informed that effective April 2024, the de minimis value for imported goods will be increased from US$50 to US$100.

This is expected to cost $864 million in lost revenue.

“Increasing the de minimis value on imported goods will facilitate access to a wider variety of goods to local consumers and will facilitate more activity in the local economy by way of intermediaries and shipping companies eager to capitalise on the increased activity,” he said.

Also, effective April 2024, the duty-free threshold for personal/household effects will be increased from US$500 to US$1000.