Thu | Sep 21, 2017

#JaBudget2017: Tax on fuel, alcohol, tobacco and motor vehicle licences going up

Published:Thursday | March 9, 2017 | 3:07 PM

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

REVENUE MEASURES:
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.