Finance Minister Fayval Williams outlines new revenue measures for the 2026/27 fiscal year on Thursday, February 12, 2026. (Photo: Garfield Robinson)
February 12, 2026
Prices of locally-manufactured products set to rise with increase in Environmental Protection Levy
KINGSTON, Jamaica — The prices of locally-manufactured goods are set to rise as the Government has moved to increase the Environmental Protection Levy (EPL) rate to 0.8 per cent from 0.5 per cent, while expanding the domestic base.
Currently, the base on which the domestic levy is charged is 75 per cent but that will move to 100 per cent effective May 1, 2026. The government is projecting to raise $3.639 billion in revenues as a result of the adjustments, according to Finance and Public Service Minister Fayval Williams.
She made the announcement in the House of Representatives on Tuesday, where she tabled new revenue measures of $29.4 billion for fiscal year 2026/2027.
Williams said the increase in the EPL was necessary in order to “finance enhancement of climate resilience”. It is in this regard that she said “it is proposed to increase the EPL rate to 0.8% from 0.5% for both imports and domestic goods, and to expand the base on which the domestic levy is charged.
The minister explained that the primary objective of the EPL is to mitigate environmental degradation, promote sustainable resource utilisation, and bolster climate resilience -particularly for Jamaica’s vulnerable island ecosystems.
It was first imposed on all goods imported but later extended to the domestic market. At the ports, it is charged on the CIF of imported items, while domestically it is imposed on the sales of locally manufactured goods, discounted by 25 per cent.
“Events of recent years have underscored the urgent need for enhanced environmental safeguards. This includes implementing stronger penalties to deter pollution,” said Williams.
She noted that a series of severe natural disasters has further challenged Jamaica’s fiscal stability, beginning with Hurricane Beryl in 2024, followed by the unprecedented Hurricane Melissa in 2025. The finance minister noted that Melissa was identified as the costliest in the nation’s history, causing estimated damage in excess of US$8.8 billion which is approximately 41 per cent of gross domestic product (GDP.
“These events have imposed a significant financial burden, contributing to a projected decline in real GDP of 0.5% and 4.5% for the 2024/25 and 2025/26 fiscal periods respectively,” said Williams.
