KINGSTON, Jamaica – The Income Tax (Amendment) Act, which will ensure that incentives provided to businesses under the Jamaica Stock Exchange’s (JSE) junior market since 2009 are maintained, was finally passed in the Senate on Friday.

The Bill, which fulfils another pre-election promise of the government, protects several incentives introduced since the establishment of the junior market in April, 2009, which would have lapsed by April this year.

It was passed in the House of Representatives in mid-October, but passage was delayed in the Senate by Parliament taking a three-week recess in November, to accommodate the local government elections.

Despite indications by the previous government that it was looking at removing some of the incentives, the current government has insisted on retaining these incentives and had promised the Income Tax (Amendment) Bill to consummate the process. These benefits include a 10-year tax break, where no corporate tax is paid for the first five years and 50 per cent of the prevailing rate is paid in the next five years.

The government said that data has conclusively shown that the tax incentives have encouraged growth of the junior market and created employment.

The market started with a capitalisation of $521 million and it is now $96.2 billion. Over 1,000 new permanent jobs have been created at the companies, which do not include indirect jobs that have also been created, the government said.