written by owen on 2013-Feb-21.
On the heels of the ministerâ€™s address to the nation we have a new set of tax measures snuck in right before Valentines Day. I am not sure about who is buying flowers this time around. The Letâ€™s build Jamaica package is aimed at further taxing the poor working class people of the nation and allowing the well to do to continue living as if nothing has happened. The new tax reforms will determine the Jamaica we live in as we continue to work toward achieving Vision 2030. This new round of taxes are expected to bring in 15 billion dollars into the governments pockets so they can be able to borrow more money to service more debt and buy new SUVs next year.
We all know how its goes down. The 2012-2013 budget came and went with new taxes on everything from animal feed, books, meat (except chicken), yogart to the phone calls that you recieve as well as the ones you make. So the new thrust is to tax everything you consume. Now lets look at the new taxes (click on the media gallery icon) which will come on board (hopefully I can make sense of it);
Revenue Measures 2013
1. These revenues measures are taken to support the Primary balance of 7.5% GDP that has been requested by the overlords in the IMF. This should not be confused with GNP which is the market value of all products and services produced in one year by labor and property supplied by residents of a country.
2. The first 3 measures are being implemented in order to broaden the tax net as well as ensuring that it is harder for the middle class to dodge the taxes imposed on them. All this is a value added tax (VAT) on consumption. The VAT has been criticized as the burden of it falls on personal end-consumers of products. Some critics consider it to be an aggressive tax, meaning that the poor pay more, as a percentage of their income, than the rich.
3. The Telephone Calls Tax (TCT) introduced last year will be included in the GCT tax base. 1.3B
4. All fees and taxes paid at ports are to be included as part of the GCT tax base. 1.5B
5. Amendment to the GCT Act to account for GCT on face value of prepaid vouchers/airtime. Not sure how this is going to work out - you will have to read this one yourself. Basically they digicel to tax before it sells the credit or something like that. $0.2B
6. Increase the tax on dividents payable to residents to 15%. 0.8B
7. Imposition of Surtax (5%) on the taxable income of Large â€œunregulated companiesâ€ making $500,000,000 or more. They have companies making them kinda monies out here? $1.2B
8. Increase(0.5%) in education tax rate. In order to address the shortfall in the SLB. Less pay for you. $2.8B
Trade Border Tax Measures
9. Customs Administration Fee on all imports (except for charitable organizations, bauxite sector ). Things will cost more in the stores. 1.2B
Other Revenue Enhancement Initiatives (Including compliance measures)
10. Increase in local Stamp Duty Rate and Transfer Tax (on properties). Cost more to sell/buy land. $2.0B
11. Amendment to the fee and gross profit structure for Betting Gaming and Lotteries. In keeping with the inductry request to expand thier earning ability, GOJ has aggreed to allow for the sale of lottery tickets on Sundays and public holidays. Increase in lottery tax (GPT) from 17% and 23% to 20% and 25%. Sell out to the devil, lotto everyday. $1.5B.
12. Reform of the Property Tax rate regime. $3.4B
13. Introduce â€œTransfer Pricingâ€ and Thin Capitalization rules.
For the actual document read; new taxes (click on the media gallery icon)