Gov’t Continuing Tax Reform Implementation

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 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).

Dr. Holness also mentioned plans to revamp the urban renewal tax credit framework, with a view to attracting increased investments in underserved communities.

He noted the Administration’s focus on, “establishing new urban centres in each parish… transforming them into economic [hubs]”.

The Prime Minister highlighted the Morant Bay Urban Centre, being built on 25 acres of previously abandoned factory lands, noting that this is “the first purpose-built town in Jamaica”, while adding that it will serve as a model for future developments.

Meanwhile, Dr. Holness said 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 $3 million to $10 million in 2019.

Additionally, he announced plans to incentivise Jamaican companies, currently domiciled overseas, to return their operations home, pointing out that, “we will make it very favourable for you to do so”.

Dr. Holness also advised that the Government is expanding online tax payment systems and administration services to enhance efficiency.

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”.

“We are committed to further simplifying tax structures and streamlining processes to reduce compliance burdens and foster growth. This is about creating a place of choice where you can live, work, do business, raise your family and retire in paradise,” Dr. Holness stated.

Meanwhile, the Prime Minister highlighted his Administration’s achievement of providing significant tax reductions and introducing tax givebacks for the first time in Jamaica’s history.

Dr. Holness said despite challenges posed by the recent global health crisis, the Government successfully delivered nine consecutive budgets with no new taxes.