Minister says sport waivers will be protected
MINISTER without portfolio, with responsibility for sports, Natalie Neita-Headley, says that the Government will continue to grant discretionary waivers for imports for sports development, despite the recent changes to the waiver system.
“Thanks to my colleague minister, Dr Peter Phillips (minister of finance and planning) provisions will continue to be made for sport development and the related support under the recently enacted Charity Organisations (Tax Harmonization) Act,” she told the House of Representatives last week.
The minister said that while the new Act has removed from the minister of finance the power to give discretionary waivers on sporting goods and equipment”, it has clearly put in place provisions that will allow all our sporting associations and bodies to continue to benefit from these waivers through statute”.
“The Act has, therefore, made it easier for persons to send duty-free charitable donations to charitable associations that support the development of sport,” she explained.
Neita-Headley, who made the point during her contribution to the Sectoral Debate at Gordon House, noted that the Act provides that “no import duty shall be payable upon any article imported into Jamaica or taken out of bond in Jamaica by an approved charitable organisation and shown to the satisfaction of the commissioner general to be required for the charitable purposes of that organisation.”
She also noted that the income tax section of the Act provides for matters considered charitable acts, which include the advancement of amateur sport.
“It is important to note that the provisions in the new Act have been expanded to cover all the present and future sporting activities as amateur sport. The Sport Development Foundation would therefore serve as the body that will work with the commissioner general (of Taxes) to ensure that all our sporting associations and bodies are vetted and registered as charitable organisations,” the minister said.
She said that stakeholder consultations will commence shortly, to ensure that local sport associations and federations are fully aware of how to deal with the new provisions.
“Mr Speaker, to that Diaspora group in South Florida or that Alumni Association in Brooklyn, New York, I want it to be clear that this Government, through a structured process of registration of our local organisations, will allow for your charitable donations to enter without duty, as we partner to ensure that every single child participating in sport, at the amateur level, will be exposed to the proper gear and equipment,” Neita-Headley said.
Dr Phillips had explained that, in order to be considered a charitable organisation in the future, entities must perform certain functions for the public benefit.
He said that while the Government recognises that charities are a major source of tax expenditure, benefiting from both exemption and waivers, it could not fill the vacuum which would be left, if the donations to Jamaica’s poor and indigent from charities dry up because of high duties and taxes.
