Jamaica PM Holness announces tax cuts, debt relief amid pressure

Jamaica’s Prime Minister Andrew Holness unveiled key policy measures at the Jamaica Labour Party’s (JLP) 81st annual conference to ease financial strain on middle-income earners and vulnerable groups. These steps, likely aimed at bolstering support ahead of a third-term bid, include tax cuts, debt relief, and social initiatives.

Holness announced plans to reduce the general consumption tax (GCT) on electricity from 15 percent to 7 percent for users consuming up to 200 kilowatts monthly, costing the government J$1.5 billion (US$9.45 million) annually. The initiative will primarily benefit middle-income households. Additionally, prepaid electricity meters will be rolled out in vulnerable communities.

Other measures include expanding eligibility for the J$20,000 (US$126) reverse income tax credit, increasing recipients to over 290,000. Unregistered individuals can apply starting February, subject to a needs assessment.

The National Water Commission will write off pensioners’ debts older than two years and offer significant discounts to reconnected customers. Craft vendors will receive fee waivers and debt forgiveness ahead of the tourism season.

Holness also announced a Tourism Worker Housing Program launching in 2025, providing homes through partnerships with hotel operators and the Tourism Enhancement Fund.

These actions follow February’s local elections, where the JLP narrowly secured a majority amid low voter turnout (29.6 percent). Holness acknowledged public dissatisfaction over issues like infrastructure and water supply, positioning the new policies as a response to voter concerns.

Despite opposition calls for an election date, Holness dismissed pressure, touting the JLP’s achievements and urging voters to trust the party’s vision. With elections due by September 2025, these measures aim to solidify his public support.