Income Tax Relief Act Amendments to be Tabled Within Three Months

The Government is in the process of finalising amendments to the Income Tax Relief (Large Scale Projects and Pioneer Industries) Act, which will enable Jamaica to attract investments of US$1 billion or more.

The legislation will provide a suite of tax incentives to potential large-scale investors.

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, who made the announcement, said he expects to table the revised document in Parliament “very shortly”.

“We’re very close [to completing the amendments]. I was actually hoping to table it in March but definitely within the next three months,” he informed.

Dr. Clarke was speaking during Wednesday’s (March 1) meeting of the Standing Finance Committee of the House of Representatives at Gordon House, where members are deliberating the 2023/24 Estimates of Expenditure.

The Government’s move to amend the legislation is intended to create a more transparent and open process to facilitate the provision of the incentives.

This comes against the background of similar provisions proposed in the arrangements with Tavistock Jamaica Inc., which is partnering with the Government to undertake the Harmony Cove tourism development project in Trelawny.

The entity is a subsidiary of global private investment company, the Tavistock Group.

“You’ll recall that a central feature of that project is the Government providing a suite of incentives to Tavistock. However, the policy position of the Government is[that] the idea of providing tax incentives to a single project that is not generally available, is inimical to the kind of Jamaica that we want to build,” Dr. Clarke told the Committee’s Members.

The Minister underscored the importance of ensuring that “we also [have] a transparent, open process for anyone else investing those sums to be afforded the opportunity of… similar types of incentives.”

“We do not want to go back to the landscape where incentives of this nature were individually negotiated. That’s not healthy for our economy or for our country. What we want to have are independent processes that investors can apply to, that are transparently administered and given,” he added.

Dr. Clarke said consequent on the tabling of the amended legislation, “I would, then, see it fit to finalise the suite of incentives with Tavistock.”

Harmony Cove is a 2,300-acre property located 23 miles east of Montego Bay, St. James, and 44 miles west of Ocho Rios, St. Ann.

It is being developed into a resort to include several world-class golf courses, a luxury spa, marina facilities, commercial developments, luxury hotels, private residences, and other amenities.

Additionally, it will include a hotel, casino, convention and entertainment centres, restaurants and retail assets, and is expected to cost some US$7.5 billion.

The project is a 50/50 venture that will see each partner injecting US$25 million.

Dr. Clarke said Harmonization Limited, the Government entity spearheading the negotiations locally and Tavistock “continue to work towards reaching a definitive binding agreement for implementation of that project.”