Working Group Being Established to Review Additional Stamp Duty Regime

A Working Group is being established to review the Additional Stamp Duty (ASD) regime, including the application for raw foods, with a view to making necessary adjustments in consultation with stakeholders.

This is in keeping with the Government’s commitment to undertake the exercise expeditiously.

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, made the disclosure as he closed the 2024/25 Budget Debate in the House of Representatives on Tuesday (March 26).

He advised that the group will comprise representatives of the Ministries of Finance, including the Jamaica Customs Agency (JCA), as well as the Ministries of Agriculture, Fisheries and Mining, and Industry, Investment and Commerce.

“Each of the parties to the Working Group will engage stakeholders in their sector. For the Ministry of Agriculture, this will include the Jamaica Agricultural Society (JAS), RADA (Rural Agricultural Development Authority), and other stakeholders in the agriculture sector,” the Minister said.

During his opening Budget Debate presentation, Dr. Clarke disclosed that the General Consumption Tax (GCT) on raw foodstuff is to be removed.

The measure, which is expected to take effect in fiscal year 2024/25, is in keeping with Jamaica’s trade obligations.

“In the same way that when CARICOM pointed out the breach in 2014, GCT was promptly removed from imported raw foods originating in CARICOM, it is the same way that the WTO (World Trade Organization), having pointed it out, we are obligated to address it.

“And there are only two options to address this breach, either we apply GCT to locally produced raw food or we remove GCT from imported raw foods; and we chose the more palatable option at this time of removing GCT from raw foods,” Dr. Clarke said.

He pointed out that WTO representatives visited Jamaica in November 2023 and brought the breach to the attention of the current Administration.

Source: JIS News