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GCT on raw foods not applicable in markets
2012-05-29 13:31:37 | (0 Comments)
Although the General Consumption Tax (GCT) has now being imposed on raw foods such as ground provisions, it is not applicable when sold in markets, says the Ministry of Finance and Planning.
Under the GCT Act, only registered GCT taxpayers with total sales of $3 million or more are authorized to collect GCT, the Ministry said in a release.
It added that the law also requires that such entities collecting GCT must prominently display their GCT certificate. GCT on raw foods is not applicable in markets, said the release.
Finance and Planning Minister Dr. Peter Phillips, in his budget presentation last Thursday, announced that effective Friday, June 1 the GCT rate will be reduced from 17.5 per cent to 16.5 per cent and several items on the exempt/zero-rated list will now be subject to the tax at the new rate.
Among the items removed from the GCT exempt/zero-rated list are raw foods. Raw foods, as outlined in the GCT Tax Act 1991, are defined as:
All fresh fruits and vegetables, including green and ripe bananas and plantains
All ground provisions such as yam, dasheen, potatoes
All legumes, that is, peas, beans, etc.
All meats, except chicken which continue to be exempt/zero-rated
All fish, crustacean or mollusk.
The Ministry said persons collecting GCT without authorization should be reported, immediately, to Tax Administration Jamaica through the help line: 1-888-TAX-HELP (1-888-829-4357).
Source: The Gleaner/Power 106 News
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