Building costs set to increase amid new taxes

The Realtors Association of Jamaica is warning the government there will be severe ripple effects resulting from the one per cent increase in transfer tax and stamp duties.

President of  the association, Howard Johnson, says there will be a slowdown in the construction and real estate industry as prospective homebuyers will experience greater difficulty in purchasing a house.

Johnson says the measures increase the possibility of tax avoidance and evasion.

Johnson says the Association is encouraging Finance Minister Dr. Peter Philips to urgently meet with the players in the building industry to look at alternatives.

Meanwhile, Johnson says the government should also reconsider its plan to withdraw $11 billion each year from the National Housing Trust.

He says it will compromise the agency's ability to provide homes for low and middle income persons.

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