Thu | Jul 29, 2021

#BudgetDebate2019: The six tax cuts, duty abolition the finance minister announced today

Published:Thursday | March 7, 2019 | 12:00 AM
Clarke... After almost 20 years of tax increases and no new taxes last year, it is now time to give back.

Finance Minister Dr Nigel Clarke today announced the abolition of some taxes and adjustments in others as he opened the 2019/20 Budget Debate.

According to Clarke, the measures will see the government giving up $14 billion.

"After almost 20 years of tax increases and no new taxes last year, it is now time to give back," Clarke said. 

SEE THE MEASURES BELOW:

1. Increase in the Annual General Consumption Tax (GCT) Threshold
The GCT threshold was last increased in 2009 to $3 million, up from $1 million. It is proposed to increase the threshold to $10 million, up from the current $3 million.
*The potential revenue loss is J$0.731 billion.  The effective date for implementation is April 1, 2019.

2. Reform of the Stamp Duty
a) All ad valorem stamp duty rates to be abolished and replaced with a specific flat rate stamp duty of $5,000 per document.
*The potential revenue loss is J$6.650 billion. The effective date for implementation is April 1, 2019.

3. Reduction of the transfer tax payable on the transfer of real property and financial instruments
The transfer tax will be cut from five per cent to two per cent.
*The potential revenue loss is J$3.431 billion. The effective date for implementation is April 1, 2019.

4. Increase in the threshold of the transfer tax applicable to the estate of deceased persons
This threshold is to be increased from the current $100,000 to  $10 million at a rate of 1.5 per cent.
*The potential revenue loss is $0.287 billion.  The effective date for implementation is April 1, 2019.

5. Abolition of the minimum business tax
The minimum business tax of $60,000 a year is payable by all registered companies in two equal instalments of $30,000 due on the 15th June and 15th September annually.
*The potential revenue loss is $1.093 billion.  The effective date for implementation is the year of assessment 2019.

6. Abolition of Asset Tax payable by non-financial institutions
The asset tax was modified in 2012 to impose on the one hand a tax regime for non-financial institutions and on the other hand a tax regime for financial institutions.
*The potential revenue loss is $1.840 billion. The effective date for implementation is the year of assessment 2019.

 

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