News

More investors showing interest in Special Economic Zone

Tuesday, May 22, 2018

Print this page Email A Friend!


THE Jamaica Special Economic Zone Authority (JSEZA) is reporting heightening investor/stakeholder interest in operating within the country's Special Economic Zones (SEZs), which are key components of the Government's Logistics Hub Initiative (LHI).

Dr Eric Deans, chief executive officer of the JSEZA, which is spearheading the initiative's development, told JIS News that the authority has 31 SEZ applications for established activities such as business process outsourcing, manufacturing, and logistics — pointing out that a significant number of the applicants are micro, small and medium-sized enterprises (MSMEs).

“We are also seeing interest from a wide cross section of industries in new and emerging industries, particularly in the logistics and maritime sectors, which are deemed attractive to operate in Jamaica,” Dr Dean noted.

He pointed out that a JSEZA market analysis identified pharmaceuticals, higher-end agro-processing, electronics, medical device, auto parts, and motor vehicle assembly among the diverse set of additional activities for consideration.

Noting that there is local and foreign interest in pursuing activities in these new industries, he attributes this to new incentives being offered under the SEZ Act that “investors are taking advantage of”, coupled with Jamaica's strategic location in the Caribbean.

The JSEZA's director of investor relations and communications, Kelli-Dawn Hamilton said the SEZ incentive regime includes an attractive corporate income tax rate of 12.5 per cent, which she said can be further reduced to 7.75 per cent with the application of various promotional tax credits, compared to 25 per cent in the regular domestic economy.

Additionally, she said SEZ companies are able to import items at the duty-free rate.

Hamilton also emphasised the importance of the authority's inclusion of the general economy in the engagements being persued.

“So through the regime, we have created an incentive framework that allows persons who purchase goods and services in the domestic economy to pay zero per cent general consumption tax, which is a huge win for the investor and for the local economy because it now means that it is more attractive to purchase goods locally,” she stated.

The director also pointed out that the authority was keen on creating linkages with domestic suppliers. As such, she said they have been advancing work to create a policy that facilitates a linkage programme “which sees us connecting local suppliers with investors”.

She said further that the authority was developing an MSME policy, pointing out that the Special Economic Zone Act stipulates the development of such an instrument.

“We recognise that our MSMEs are central to moving our economy… and so we must carve out a special regime for these players… and it is something that we are actively working on with a number of stakeholders,” Hamilton said.

She emphasises that the authority has been implementing a regime that is adaptable and responsive to the market, “while maintaining our role as regulators of the free zone/SEZ space”.

ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT