Shaw introduce exenciones fiscales y políticas renovadas para estilumar la economía
A raft of revenue measures aimed at stimulating growth in the economy while lending support to certain key sectors were yesterday announced by the Government.
However, while the administration has introduced plans to revive the sputtering motor-vehicle industry, motorists will have to contend with a $1,000 hike in motor-vehicle licensing fees and will now be required to pay general consumption tax (GCT) on second sale of motor vehicles.
Finance and Public Service Minister Audley Shaw said the administration would be cutting the common external tariff (CET) on motor cars, including SUVs, from 40 per cent to 20 per cent.
But persons seeking to acquire pickups will have to pay more on the CET, as the amount will jump by 100 per cent. It will move from 10 per cent to 20 per cent.
Transfer tax and stamp duty on securities will be removed effective May 16. This move is being made by the Government in an attempt to facilitate the issuance and trading of registered corporate bonds or securities.
Fees on probate and letters of administration and transfer tax on death for estates that are in the system as at April 27 will also be reduced on May 16. A flat payment of $5,000 will become applicable.
GCT-registered taxpayers who purchase machinery or equipment valued at $100,000 or more will no longer have to wait 24 months to claim input tax credit, as the timeline has been reduced to three months.
This will take effect on May 2 and requires an amendment to the GCT Act.
And taxpayers have been spared the imposition of new taxesto finance the Government's $544.7-billion spending plan this fiscal year despite a $140.8-billion gap in the Budget.
Shaw announced that instead of any new taxes, the administration would be plugging the hole in the Budget by raising $97 billion on the domestic market.
In opening the Budget Debate yesterday, Shaw told his parliamentary colleagues that the balance of $43.8 billion would be raised from external sources.
In a presentation dubbed 'Stabilisation to Growth', the finance minister said the sum to be raised from external sources would include investment project loans and policy based/development policy loans.
Projected revenue and grants for the current fiscal year is $350.8 billion, representing an 11.5 per cent increase over the previous financial year.
Of this amount, the Government plans to pull in $308.3 billion in tax revenues.
In terms of non-tax revenue, the administration intends to rake in a little more than $18 billion. This represents an 11.7 per cent decline or $2.3 billion when compared with the previous fiscal year.
Receipts from non-tax revenue in the last financial year were bolstered by the inflows of profits from the Bank of Jamaica (BOJ), amounting to $4 billion. No revenue is expected from this source for the current financial year due to losses racked up by the BOJ.
With the bauxite industry bouncing back from the severe effects of the global recession, the Government has projected that the sector would provide levy receipts amounting to about $1.8 billion. Last year, the sector was only able to contribute $421 million to government coffers because of the downturn on the world market.
Turning to capital revenue, the administration is forecasting that it will pull in some $9.1 billion. This represents an increase of $5.5 billion over the previous financial year. The increase is due to programmed repayment of on-lent loans amounting to $7.9 billion by the Development Bank of Jamaica.
The forecast also includes royalties from the bauxite alumina industry for the just-concluded fiscal year.
For this fiscal year, the Government has forecasted $13.4 billion in grants, representing amounts anticipated from the European Union for budgetary support.