Jamaica bank withdrawal tax proposal withdrawn

(Jamaica Gleaner) KINGSTON, Jamaica: The bank withdrawal tax is to be withdrawn and two new revenue measures are to be imposed.

Finance Minister Dr Peter Phillips made the disclosure as he closed the 2014-2015 Budget Debate in the House of Representatives yesterday.

He said the Government has listened and has taken on board some constructive comments.

“We take pride in knowing we are an administration that listens,” the minister said.

The revised tax measures will see a withholding tax of 15 per cent on all insurance premiums paid by Jamaican residents to non-residents.

The Government will also modify the GCT Act to improve the rules relating to imported services.

The measures will yield J$2.3 billion.

The special consumption tax on hybrid vehicles will also be removed.

Phillips said the unification of the rates for alcoholic beverages has been deferred for one month.

Phillips said bankers and investors must recognise “that one sector cannot succeed on its own” and cautioned the parliamentary opposition that “now is not the time for idle threats”.

Opposition Leader Andrew Holness had urged the Government to roll back the bank taxes or face the consequences.

Other Opposition MPs have threatened street protests.

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