Business
Jamaica: Budget focuses on job creation, economic growth – no new taxes
The Jamaica government has presented a J$521 billion (US$5.21 billion) tax free budget to parliament with Finance Minister Dr. Peter Phillips indicating that the aim of the Simpson-Miller administration is to collect outstanding taxes and remove some distortions such as zero-rated electricity charges.
“You will note and no doubt the other members will note that this administration has presented a fully funded budget, there are no new taxes in this budget,” he told legislators on Thursday.
“The expenditure budget is to be financed by revenue flows of J$407.2 billion (US$4.07 billion), loan receipts of J$103.3 billion (US$ 1.03 billion) and by drawing down cash balances of J$10.4 billion (US$ 104 million).”
Phillips said that the tax revenues of J$360 billion (US$ 3.6 billion) reflect the impact of the two tax packages announced last year, calculated for a full fiscal year.
He also said the government plans to make changes to the Customs Administration Fees (CAF) to favor raw material imports over finished goods. But that is expected to have no impact on revenues.
In focusing on the growth of the economy, Phillips promised that the government will implement several strategic investments with the logistics hub being one of the options.
Work on setting up the logistics hub is scheduled to begin by the end of this fiscal year and is expected to be completed in 2015/2016. When established, the hub will position Jamaica at an important transit point in the global trading system.
