Time to remove tax on gratuities for tourism workers – Senator Allen
KINGSTON, Jamaica- People’s National Party (PNP) Spokesperson on Tourism and Linkages, Senator Janice Allen is calling on the Government to remove the tax on gratuities for workers in the tourism industry immediately.
“I demand the immediate removal of income tax on gratuities! It’s high time we ensure that those who bear the weight of our tourism success are justly compensated. This issue needs fixing, and the next PNP government will FIX it!”, said Allen.
She made the call during her recent contribution to the State of the Nation Debate in the Senate.
Allen reminded that it was in 1991 when PJ Patterson, the then finance minister in the Michael Manley Administration, “took a bold and visionary step” to exempt gratuities from income tax during his budget presentation.
“This policy aimed to improve compensation for workers in the tourism industry. By removing the tax, employees were able to keep more of their hard-earned income, a measure that signalled their immense value to the sector. It went into effect on January 1, 1992, just weeks after being tabled, and demonstrated that the government of the day understood the critical role these workers played in making Jamaica’s tourism product world-renowned,” said Allen.
She pointed out that in 2009, during a period of fiscal reform when the country was under significant economic strain, the Jamaica Labour Party (JLP) Government reintroduced income tax on gratuities.
“On July 21, 2009, the then Minister of Finance, Audley Shaw, signed a Ministerial Order, which took effect on August 1, 2009, imposing a full 25 per cent tax on non-reimbursable allowances, including gratuities. This move, influenced by the conditions of Jamaica’s agreement with international financial institutions like the IMF, was positioned as part of a broader strategy to stabilise the economy and boost revenue during difficult times,” she noted.
Continuing, she said “That was then. Today, as the government boasts of fiscal stability and economic growth, I stand here to say: the time has come for people-centred leadership. I call on this administration—on the minister of finance, the minister of tourism, and the prime minister— to take decisive action
