With its revenues severely imperiled by Hurricane Melissa, the Government is looking to raise $29.4 billion in new taxes in the 2026-2027 fiscal year.

The bulk of that – $10.1 billion – will come from a tax on sweetened non-alcoholic beverages.

Finance and Public Service Minister Fayval Williams outlined the new revenue measures on Thursday, shortly after she tabled the Estimates of Expenditure for 2026/27 during a brief sitting of the House of Representatives.

It is the first time in 10 years that the Government is imposing new taxes and Williams remarked that “it took a Category 5 hurricane for that to happen”.

Williams told the House that a Special Consumption Tax (SCT) is being levied on non-alcoholic sweetened beverages (NASBs) under the General Consumption Tax Act (GCT).

NASBs are defined as all non-alcoholic beverages containing added sugar or other caloric sweeteners, as well as beverages containing artificial or non-nutritive sweeteners, whether carbonated or non-carbonated, and whether manufactured locally or imported.

“The primary objective of this measure is not only revenue mobilisation; it also supports broader public health objectives,” Williams said, adding that Jamaica continues to experience elevated levels of obesity and diabetes, and sweetened beverages are recognised as a significant source of excess sugar consumption.

The tax on NASBs will take effect during the first quarter of fiscal year 2026/2027.

Williams also announced a SCT on cigarettes which will be increased by $3 per stick, moving the commodity to $20 per stick and resulting in a revenue haul of $1.1 billion effective May 1, 2026.

Modifications to the 20 per cent duty concession on motor vehicles for public officials will yield $1.3 billion in revenues, effective May 1. While an increase in the Environmental Protection Levy rate to 0.8 per cent from 0.5 per cent, and domestic base expansion is projected to yield $3.639 billion in revenue as of May 1.

For the tourism sector, an increase in the GCT rate on tourism activities to the standard rate of 15 per cent, up from 10 per cent, should realise revenues in the amount of $11.4 billion annually. This increase will take effect in April 2027 to give the tourism industry more time to recover from the impact of the hurricane.

Consumers of alcoholic beverages will see SCT being levied on litres of pure alcohol (LPA). Williams announced that the SCT on alcoholic beverages will be increased from $1,230 per litre of pure alcohol to $1,400 per litre.

“The proposed increase is intended to preserve the real value of the tax and strengthen revenue mobilisation,” Williams explained.

She said the estimated revenue gain associated with increasing the SCT on LPA is approximately $1.6 billion and will also take effect on May 1.

Of note is that this marks the first time that the revenue measures are laid in the Parliament at the same time other documents such as the Estimates of Expenditure are tabled. This is a requirement of the Financial Administration and Audit Act, and non-compliance was flagged by the Independent Fiscal Commission in January 2025.

-Lynford Simpson