Comprehensive tax reform is a key plank of Jamaica Economic Reform programme. The government has finalized a blueprint of all the key elements of the 2013/14 reform in February 2014.
The tax reform is expected to result in a reduction of tax expenditures from around 6 percent of GDP in recent years to 2½ percent by 2015/16. The new system will be effective at the start of FY2014/15.
The tax reform is expected to result in a reduction of tax expenditures from around 6 percent of GDP in recent years to 2½ percent by 2015/16. The new system will be effective at the start of FY2014/15.
A fiscal rule will be established to enhance fiscal transparency and lock in the gains of fiscal consolidation. In particular, the fiscal policy framework will be revised to limit the annual budgeted overall fiscal balance of the public sector as defined under the rule, to achieve a reduction in public debt to no more than 60 percent of GDP by the end of FY 2025/26.
The new Charities Act is now in effect. The government has ceased the granting of waivers to charities other than under the new Act and, effective December 1, 2013, all new applications (organizations/individuals) must be registered under the new regime, in order to be eligible for exemptions granted under the Act. A transitional period of six months has been provided under the Act to existing charities to facilitate registration at the end of which, if not registered as per the new regime, these entities would no longer qualify to benefit from requisite exemptions. This transition period ends on June 24, 2014. Government Tax policy as contain in IMF Plan
No comments:
Post a Comment