Jamaican Government announced new measures to raise $23.4 billion in additional taxes.

Jamaican Government announced new measures to raise $23.4 billion in additional taxes. 

Dr Phillips announced in Parliament this afternoon the following additional taxes measures as part of measures to raise money to fund the $612 billion-budget. 

The measures includes:

• General Consumption Tax (GCT) will be cut by one percentage point from 17. 5 per cent to 16.5 per cent. However some items that were previously exempted from the tax like saltfish, milk-based products and condensed milk will now attract GCT. 
• A special consumption tax of $9.50 will be added to each litre of alcoholic beverage. This means a drink of white rum will cost between seven and ten dollars more. 
• On June 1, the Government will increase the threshold for GCT on electricity from 200 Kilo Watt Hours to 300 Kilo Watt Hours and the travel allowance paid by companies to all categories of workers will be taxed. 
• Gratuities in the Hotel sector will remain non-taxed but come September 1, 2012 it will cost more to stay at a hotel depending on the size of the resort. 
• The corporate income tax rate will be cut to 25 per cent but the 33 per cent rate will remain for financial institutions like banks as well as for telephone companies. 
• All registered companies will now have to pay a flat fee of $60,000 a year. 
• License plates as well the licensing and registration of motor vehicles will be going up by 50 per cent. 
• The income tax threshold is to be increased from $441,168 dollars to $505,312 dollars starting next January. 

See Detail Revenue measures: 2012/2013