Jamaica: PM Simpson-Miller hints at changes to controversial bank levy

Jamaica’s Finance Minister, Peter Philips. PHOTO/File

Portia Simpson-Miller administration on Tuesday hinted at the possibility of amending a controversial tax on bank withdrawals with the Prime Minister indicating that Finance Minister Peter Phillips would address the issue when he winds up debate on the J$540.1 million (US$4.9 million) budget on Wednesday.

“This year there has been a small revenue package presented by the Minister of Finance, concerns have been raised, we have listened, I have spoken to the Minister. We have discussed the matter in Cabinet, and the Minister of Finance is to address the issues that have been raised when he closes the debate tomorrow,” Simpson-Miller told legislators as she made her contribution to the budget debate.

Jamaica’s government had initially indicated last week that it intends to receive J$2.5 billion (US$22.7 million) in revenue from the new levy on the use of ATMs/ABMs, electronic banking, point of sales, checks and internet transfers when the measure goes into effect, June 1.

The levy on withdrawals from deposit-taking institutions and security dealers will be calculated on a graduated rate system, with withdrawals less than one million being subjected to a 0.1 percent tax.

Phillips said the measure was expected to bring in revenue estimated at J$2.25 million this fiscal year, and would provide the bulk of the revenue in new taxes. -(CMC)