Gov't to lose nearly $2b in revenues from suspension of bauxite levy
The government is to lose nearly $2 billion in revenues annually from the suspension of the levy on bauxite.
The bauxite levy was suspended as part of an overhaul of the tax regime on the extractive industries.
Calculations by the Financial Gleaner, using a 2017 estimate of Jamaica’s US$14.6 billion GDP provided by Global Finance and sourced from the IMF’s World Economic Outlook 2016, show that the suspension of the levy will result in the government not collecting $1.9 billion.
Finance Minister Audley Shaw explained that this was done in a bid to facilitate some US$2 billion in investment by China's Jiquan Iron and Steel Company (JISCO), which acquired the defunct Alpart bauxite refinery in Nain, St Elizabeth.
He said it was also done to prevent the closing of the Noranda bauxite operations in St Ann.
Shaw said the government instead opted to enter into a profit share arrangement with Noranda.