Sun | Aug 20, 2017

Opposition urges action on latest US remittance tax proposal

Published:Thursday | April 27, 2017 | 4:41 PM

The Opposition People’s National Party says the proposed legislation which would see the US imposing a two per cent tax on remittances would be damning to countries like Jamaica.

The Border Wall Funding Act of 2017 is intended to amend the current Electronic Transfer Act.

The tax would raise funds for construction of a US border wall.

The PNP says the implications of this bill, if passed, are quite damning when one considers that remittances account for a significant source of revenue for countries in this region.

The PNP believes it would lead to a reduction in remittances, which will no doubt have a negative impact on the economy.

It notes that two per cent of the US$2 billion in remittances is US$40 million or just over J$5.1 billion.

The Opposition is calling on the Government of Jamaica to act expeditiously in opening the diplomatic channel with neighbouring CARICOM partners with the aim of lobbying the US Government and Congress to reconsider the current proposal.