Mon | Sep 25, 2017

UPDATE: Junior Stock Exchange incentives debate tomorrow

Published:Tuesday | September 27, 2016 | 9:05 AM

Parliamentary debate on the proposed restoration of incentives under the Junior Stock Exchange is expected to begin tomorrow in the House of Representatives.

This was reportedly disclosed by Finance and Public Service Minister, Audley Shaw, during an interview with JIS News.

Shaw, who will pilot the debate, says the restoration of the incentives is being pursued because several listed companies had benefited significantly from the concessions offered.

Incentives under the Junior Stock Exchange include a 10-year period when no corporate tax is paid for the first five years and 50 per cent of the prevailing rate is paid in the next five years.

It also gave companies access to capital as a result of preferential treatment from banks.

The junior market was set up in 2009 to encourage and facilitate the development of smaller companies, particularly newer enterprises, by enabling them to raise equity.

However, former Finance Minister, Dr Peter Phillips, had disclosed in 2013 that the incentives were being phased out as part of measures under the Omnibus Tax Incentives legislation mandated by the International Monetary Fund.

He said companies listed on the exchange prior to January 1, 2014 would continue to enjoy their current benefits for the remainder of their unexpired incentive period.

Meanwhile, those listed between 2014 and December 31 this year would be entitled to enjoy full relief from income for a period of five years from the date of listing.