SEEING HIGHER PRICES
Eyewear costs surge under tax shift
PRESCRIPTION eyewear is becoming more expensive under a new interpretation of Jamaica’s General Consumption Tax (GCT) Act, which industry players say effectively embeds unrecoverable import taxes into retail prices.
The Jamaica Optometric Association (JOA), in a December 15 letter to Finance Minister Fayval Williams, said ophthalmic frames, lenses, and contact lenses are now being subjected to GCT at the point of importation unless importers produce individual prescriptions for each item to qualify for exemption.
The association said the requirement is administratively burdensome and, in the case of frames, commercially unworkable.
Frames are typically imported in bulk and held as inventory until a patient selects a pair, at which point prescription lenses are fitted. As no prescription exists at the time of importation, the exemption cannot be practically applied, the JOA said.
“Whilst this is administratively burdensome for ophthalmic lenses and contact lenses, it cannot be achieved when frames are imported as they are held in stock until such time as a patient selects one,” the association wrote.
Although the supply of prescription eyewear remains exempt from GCT at the retail level, the application of tax at import means retailers are unable to recover GCT paid upfront, effectively making it a cost of doing business.
Industry operators said those costs are being passed on to consumers, increasing the price of eyeglasses and contact lenses, in some cases, up to 20 per cent.
The issue has emerged at a time when optical providers are already facing mounting pressure from online retailers, as more consumers obtain prescriptions locally but purchase eyewear from overseas suppliers at lower prices.
The Jamaica Optometric Association said it is awaiting a response from the Ministry of Finance following its appeal.
“The JOA is waiting patiently for a response from the Minister of Finance to this implemented policy,” said President Dr Dawn Woo-Lawson to Jamaica Observer in written responses to our queries.
“We wish for a clarification of this policy as it is impacting the cost of eyeglasses in Jamaica,” she added.
Industry players said the change was implemented without prior notice, with some importers only becoming aware of the requirement after shipments were held at the port pending submission of prescriptions.
They added that while it is technically possible to provide prescriptions for some items, the process creates additional administrative burdens and delays.
A proposal to allow businesses to pay GCT upfront and reclaim it after sale by submitting prescriptions has also been raised, but operators say this would be difficult to implement in practice, particularly for frames that may remain unsold or are stocked in advance.
The association said the sector is already under pressure from increased competition from online eyewear retailers, and that additional costs are further affecting the viability of some practices.
It said this could reduce access to eye care, particularly in underserved communities.
The association has asked the ministry to re-evaluate the interpretation so that ophthalmic frames, lenses, and contact lenses imported by qualified practitioners remain exempt at the border. We were also told that a follow-up letter was sent to the prime minister, but neither his office nor the finance ministry has responded.
Prescription eyeglass frames on display at a local optical store, as industry players warn that a new interpretation of the GCT Act could push up costs for consumers. (Photo: Naphtali Junior)