Phillips underscores the need for new tax measures
Finance Minister, Dr Peter Phillips yesterday sought to press home the importance of the measures following the opposition walkout.
He said the revenue measures, the National Debt Exchange and other initiatives are aimed at reaching a speedy agreement with the International Monetary Fund (IMF) and getting the economy back on track.
The tax package announced by Dr Phillips yesterday is expected to yield $15.9 billion in additional revenue to support the $602.5-billion budget tabled last week.
Among the news measures will be an increase in the Education Tax of 0.5 percentage points paid by employers and 0.2-5 percentage points by employees.
However, people earning minimum wage and who are below the income tax threshold will not be required to pay the new education tax.
There will also be an increase an increase in stamp duty from 3 per cent to 4 per cent and an increase in transfer tax from 4 per cent to 5 per cent.
And there’s to be an increase in the tax on dividends for Jamaican residents from 10 per cent to 15 per cent.
Lottery companies will also be asked to pay more gross profit taxes, but in exchange, lottery tickets may now be sold on public holidays and on Sundays.
Apart from the tax measures, Dr Phillips says the National Housing Trust will be required to contribute $11 billion a year to the Government’s coffers throughout the life of the impending four-year agreement with the International Monetary Fund.