Gov’t announces tax measures
Published:Thursday | May 24, 2012 | 5:21 PM
Damion Mitchell
Editor - Radio & Online
The Finance Minister Dr Peter Phillips has announced new measures to raise $23.4 billion in additional taxes.
Dr Phillips made the announcement in Parliament this afternoon as part of measures to raise money to fund the $612 billion-budget.
Phillips said General Consumption Tax (GCT) will be cut by one percentage point from 17. 5 per cent to 16.5 per cent.
But more items that were previously exempted from the tax like saltfish, milk-based products and condensed milk will now attract GCT.
However, Dr Phillips says many items like chicken and sanitary napkins will continue to be tax free.
A special consumption tax of $9.50 will be added to each litre of alcoholic beverage.
This means a drink of white rum will cost between $7 and $10 more.
Come June 1, the Government will increase the threshold for GCT on electricity from 200 Kilo Watt Hours to 300 Kilo Watt Hours.
Dr Phillips says in the hotel sector, there will be a removal of all tax-free expenses on commission and transportation but gratuities will remain non-taxed and come September 1, 2012 it will cost more to stay at a hotel depending on the size of the resort.
Dr Phillips also says the corporate income tax rate will be cut to 25 per cent but the 33 per cent rate will remain for financial institutions like banks as well as for telephone companies.
And all registered companies will now have to pay a flat fee of $60,000 a year.
Dr Phillips says this will ensure that those who are dodging the tax system are caught.
Meanwhile, motorists have also been hit hard.
The finance minister says license plates as well the licensing and registration of motor vehicles will be going up by 50 per cent.
However amid the new tax measures, Dr Peter Phillips says the income tax threshold is to be increased from $441,168 to $505,312 starting next January.
This means that the first $505,312 of people’s salary will not attract income tax.
damion.mitchell@gleanerjm.com