KINGSTON, Jamaica — The Jamaica Chamber of Commerce (JCC) has congratulated the Government for the “pro-growth initiatives” announced in yesterday’s budget presentation by Minister of Finance & the Public Service, Dr Nigel Clarke.

In a statement this afternoon, the JCC said the announced initiatives will be well received by the business community, adding that it is pleased that the net reduction in taxes announced was framed as a return of benefits to the Jamaican people for their sacrifice over the years which has led us to an improving economy and allowed for a reduction in the primary surplus requirement.

The finance minister created a stir in the country yesterday when he announced that the Government was “giving back” $14 billion to taxpayers.

Clarke said that the Government has decided on a stimulus path on the basis that Jamaica is now in the “best shape” it has been compared to any other period in the last 50 years.

Among the revenue measures that the minister revealed in Parliament, are an increase in the General Consumption Tax (GCT) threshold to $10 million, up from $3 million ($731 million); abolition of the long controversial minimum business tax ($1.093 billion); and the abolition of the asset tax payable by non-financial institutions.

JCC’s statement in full:

The Jamaica Chamber of Commerce congratulates the Government of Jamaica for the pro-growth initiatives announced in yesterday’s budget presentation led by the Minister of Finance & the Public Service.

The announced abolition of the Minimum Business Tax, the abolition of the Asset Tax for non-financial businesses (we would have preferred if this applied to all companies) ; the movement of the GCT threshold from $3 million to $10 million, the reduction of the transfer tax on real estate transaction from five per cent to two per centand the replacement of the ad valorem stamp duty with a fixed rate of $5,000 per transaction include many initiatives for which we have long advocated, and we are confident that they will be well-received by the business community at large.

We are also pleased that the net reduction in taxes announced was framed as a return of benefits to the Jamaican people for their sacrifice over the years which has led us to an improving economy and allowed for a reduction in the primary surplus requirement from seven per cent to 6.5 per cent. Of note the minister also underscored that the tax reduction would not reduce the nation’s continuing focus on its debt reduction program and would allow for an expansion of the social safety net for the most vulnerable. We believe that such attention to balance is to be saluted.

The JCC will continue to listen keenly to the other contributions to the 2019/2020 budget debate and expect that additional information will emerge as the debate cycle progresses over the weeks ahead. We believe though, that the minister’s opening presentation augurs well for the stated objective of Growth with Equity.