News Release, Jamaica: Amendments to make the General Consumption Tax (GCT) collection more effective and also to reduce interest on Income Tax have been approved by Cabinet.
Minister with responsibility for Information, Daryl Vaz, said the Income Tax Act will be amended to reduce the interest on late payments from 40% to 20%. This reduction is expected to encourage taxpayers with arrears to come forward and clear their outstanding balances.
The Minister told this morning’s post-cabinet press briefing at Jamaica House that the changes to the GCT Act will affect imported services. The changes will also define an imported service; specify the time of the supply of an imported service and the calculation of input taxes on imported services.
The amendments will address fixed penalties relating to improper display and handling of the GCT certificate and also to compel taxpayers to be registered with the GCT Commissioner. There will be clarity on the application of GCT on one-off major entertainment events. The amendments will also remove the disparity between the treatment of imported raw materials and the procurement of raw materials locally by manufacturers.
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