#JaBudget2017: Tax on fuel, alcohol, tobacco and motor vehicle licences going up
The Andrew Holness administration has announced increases in taxes on motor vehicle licences, fuel, tobacco and alcoholic beverages as well as a 16.5 per cent GCT on group health insurance among measures aimed at almost $30 billion in revenue.
Finance Minister Audley Shaw made the announcement this afternoon in the House of Representatives.
READ: Full list of revenue measures and schedule at http://go-jamaica.com/revenuemeasures/
The government has a funding gap of at least $27 billion.
Shaw said $11.4 billion will be drawn from the National Housing Trust and additional $3.9 billion will come from a revised property tax system.
Those, added to the $13.5 billion in tax measures, total approximately $30 billion.
IN PHOTO: Finance Minister Audley Shaw and Prime Minister Andrew Holness
Increases in the Special Consumption Tax (SCT) on fuel will range from $0.43 to $7.36 per litre
-$7.5 billion in revenue is expected. Effective date March 15.
Increase in SCT on pure alcohol from $1,120 per litre to $1,230 per litre
-$403 million in revenue expected. Effective date March 13.
Application of GCT at 16.5 per cent on group health insurance
-$1.9 billion revenue expected. Effective date April 3.
Increase in motor vehicle licence and fees by 20 per cent
-$464 million revenue. Effective date March 13.
Reimposition of withholding tax on general insurance premiums paid by Jamaican residents to non residents at rate of 15%
-$990 million in revenue expected. Effective date : Year of assessment ending 2017.
Reduce threshold for application if GCT on consumption of residential electricity from 350 kilowatt hours to 150kWh per month
-$1.5 billion in revenue expected. Effective date April 3.
Increase tax on tobacco products from $14 per stick to $17 per stick
-$826 million in revenue expected. Effective date March 13.