Government to Undertake National Drive to Reduce Red Tape and Bureaucracy

Prime Minister, Dr. the Most Hon. Andrew Holness, says a national drive to reduce red tape and bureaucracy is to be undertaken by the Government.

“To achieve rapid economic growth, we must become the most business-friendly and customer/citizen focused country in the region. We are fully committed to making Jamaica the best place to do business in the region,” Dr. Holness said.

He was addressing a press briefing to announce the Government’s new policy direction for growth, dubbed ASPIRE Jamaica, at the Office of the Prime Minister on Tuesday (November 19).

This new framework comprises six pillars critical for transforming Jamaica into a modern, peaceful, productive and prosperous society.

ASPIRE stands for:

• Access to Economic Opportunity for All (Inclusive Growth)

• Safety and Security

• People (Human Capital Development)

• Infrastructure Development

• Reform of the Bureaucracy (Ease, Speed and Cost of Doing Business), and

• Economic Diversification/New Industries

The Prime Minister said with the debt to gross domestic product (GDP) ratio significantly reduced, it is time to reassess and streamline these processes.

“We will simplify approvals, reduce wait times and remove unnecessary barriers that have outlived their purpose. We will take a hard look at existing policies, permitting and approval processes, reform those that have outlived their usefulness, and remove the unnecessary layers of approval that hold us back,” Dr. Holness said.

“This is not just about large investors, it is also about making Jamaica a place where micro, small, and medium-sized enterprises (MSMEs) can thrive. Cutting red tape and improving efficiency in government also positively impacts citizens by reducing wait times and making it easier and faster for our citizens to do business with government agencies,” he added.

Dr. Holness also announced the establishment of an Efficiency Programme Oversight Committee, which will focus on cutting red tape and improving efficiency in government.

“We are also looking at our tax and customs policies with a view to streamlining them, making them easier to implement, as well as providing the right incentives to drive productivity and economic growth,” he said.

The Prime Minister also informed that the Government intends to move forward with the consolidation of Jamaica’s various payroll taxes into a single payroll tax deduction.

“We are exploring an increase in the threshold at which small businesses need to register and account for General Consumption Tax (GCT). In 2019, this Administration increased the threshold from $3 million to $10 million, and we are looking at a further increase to remove this burden from small businesses,” Dr. Holness said.

“We are re-evaluating the Urban Renewal Tax Credit, with the aim of enhancing its effectiveness. This involves restructuring its framework and expanding the geographical areas eligible for this incentive. By doing so, we can attract greater investments into underserved communities, transforming them into vibrant economic hubs,” he added.

Meanwhile, the Government is considering accelerated capital allowances to encourage businesses to modernise and retool their facilities, as well as for investments in technology.

This, Dr. Holness said, will support enhanced productivity and competitiveness, especially in key industries that drive the economy.

“We are examining the removal of taxes on tips. This initiative is aimed at rewarding productivity and excellent service, particularly in sectors like hospitality, where service excellence plays a critical role in our success as a global destination. It would not be limited to hospitality, but extend to all service industries,” he pointed out.

Dr. Holness said the Government is also exploring the establishment of a National Infrastructure Fund — a vehicle designed to invest in and manage public-private partnership (PPP) projects.

This fund, he informed, will create new opportunities for institutional investors, such as pension funds, to directly participate in nation-building, thereby ensuring that critical infrastructure is built sustainably and strategically for the future.