By Damion Mitchell, Staff ReporterFINANCE AND Planning Minister, Dr. Omar Davies is expected to release today a report confirming taxation on punters' winnings in the gaming industry, instead of the 15 per cent General Consumption Tax (GCT) which he had proposed in April.
Dr. Davies had announced on April 30 that the Government would climb down from its controversial plan to charge GCT on a number of pharmaceutical drugs, medical aides and agricultural inputs and, instead, impose the GCT on the gaming industry.
RESENTMENT
However, this led to resentment from the affected industry. Horse racing interests complained that they were not in a position to absorb any further taxation. Under the existing regime in the racing industry, seven per cent of the revenues from racing sales are paid over to the government.
The two lottery companies Jamaica Lottery Co. Ltd., sellers of Lotto, Pick3 and Three Way Drop Pan, and Supreme Ventures Ltd., sellers of Cashpot, Lucky 5 and Dollaz - were given three to four week moratorium to make adjustments to accommodate the new tax after also raising concerns.
The Gleaner has been reliably informed, however, that due to the complexities involved in introducing the tax in the industry a decision has been taken to withdraw the proposed GCT and introduce a tax on winnings, instead.
State Minister, Fitz Jackson, said yesterday that the Minister will outline the areas where changes will be made to the previous decisions on GCT, today. He refused to give any detail yesterday, saying that he did not wish to pre-empt Minister Davies' report.
According to him, the Ministry was "candid" enough to understand that no one would welcome the tax; however, he said stakeholders of the gaming industry would understand the "circumstances" which made it necessary.
The government's move to impose the GCT on the gaming industry was part of several new measures aimed at raising $13.8 billion in new taxes to close a gaping hole in the $261.8 billion Budget presented at the start of the current financial year.
