Tue | Sep 27, 2022

Tax for public-transport operators coming soon

Published:Friday | July 12, 2013 | 12:00 AM

THE GOVERNMENT is expected to announce in another two weeks the flat tax that public-transport operators will be required to pay.

Implementation of the tax, which follows extensive negotiations between Tax Administration Jamaica (TAJ), public-transport operators and the Ministry of Transport, could be as early as August.

Minister without portfolio in the Ministry of Transport, Works and Housing, Dr Morais Guy, said TAJ would be making a submission on the flat tax to the finance ministry.

During his contribution to the Budget Debate earlier this year, Finance and Planning Minister Dr Peter Phillips announced the imposition of a flat fee of $60,000 per year on all registered companies. It is not yet known if the flat tax for public-transport operators would be a similar amount.

Guy told The Gleaner yesterday that the finance minister would sign off on the flat tax, after which the announcement would be made.

Guy spearheaded the talks between the transport operators and the tax authorities.

The transport ministry said the move would eventually result in further formalisation of the public-transportation sector as bus and taxi operators will begin contributing to statutory tax schemes such as income tax, education tax, National Insurance Scheme and National Housing Trust contributions.

Transport operators will have further dialogue with their members over the next two weeks to advise them about the new development.

However, in a release yesterday afternoon, the Jamaica Association of Transport Owners and Operators said any plans to introduce any flat tax on PPV operators would be rejected by its membership and also by the majority of the public-passenger transportation sector.