THE Government could revisit aspects of its recently tabled $29.4-billion tax package as manufacturers meet with finance ministry officials this week, signalling possible adjustments ahead of the budget debate.

Richard Pandohie, chief executive officer of Seprod Group, told the Jamaica Observer in an interview Monday that industry groups, including the Jamaica Manufacturers and Exporters Association (JMEA) and the Private Sector Organisation of Jamaica (PSOJ), are engaged in consultations with the Ministry of Finance, seeking changes to measures they say could compound existing external pressures.

“We’re hopeful that when the consultation is done, there are aspects of [the tax package] that the Government will realise could perhaps be looked at again. I’m hopeful that levies that put us at a competitive disadvantage — especially on exports — will be reviewed and revised,” Pandohie told
Business Observer. “I’m pretty confident about that, because I don’t think it’s the intent of the Government to put local manufacturers at a disadvantage in the external space,” he added.

Among the measures drawing the most attention is the proposed increase in the Environmental Protection Levy from 0.5 per cent to 0.8 per cent, along with the expansion of its domestic base, projected to generate approximately $3.6 billion in additional revenue in the upcoming fiscal year. The levy structure is understood to be part of ongoing discussions as officials seek to meet revenue targets without undermining export competitiveness.

The broader package also includes new and higher Special Consumption Taxes, most notably the introduction of a tax on sweetened beverages projected to raise roughly $10.1 billion in the upcoming fiscal year. Increases in Special Consumption Tax on alcohol and cigarettes are also expected to generate additional revenues, alongside the application of General Consumption Tax to certain digital services supplied from overseas.

While the Government has framed the sweetened beverage tax as both a revenue and public health measure, manufacturers say any expansion of consumption-based taxes can have ripple effects across distribution chains, pricing structures, and consumer demand — particularly in a period of tightening disposable income.

“If the Government doesn’t look really carefully at some of these taxes, it could make us even less competitive in export markets — and that would be very difficult for us to swallow,” he said.

Pandohie stressed that manufacturers are not opposed to revenue mobilisation but want measures calibrated to avoid unintended impacts on exporters already navigating higher input costs and the recent increase in certain US tariffs to 15 per cent.

He said consultations now under way between industry groups and the Ministry of Finance have been constructive.

“Consultations are being had now. The Government has been very open in allowing manufacturers to come to the table to have discussions so, fingers crossed,” he said.

Pandohie acknowledged that the Government is seeking to fill a fiscal gap following Hurricane Melissa, and noted that Jamaica has gone several years without direct tax increases. However, he argued that revenue targets could be achieved without placing local manufacturers and consumers at a competitive disadvantage.

“I think the intent of the Government is to raise revenue, but I don’t believe their intent is to make manufacturers less competitive in the export market,” he said, adding that once consultations are completed, aspects of the measures could be revisited ahead of the budget debate, which begins next Tuesday.