Gov’t looks to revitalise used car market, removes GCT from importation of some animals
Published:Wednesday | March 8, 2023 | 1:38 AMEdmond Campbell/Senior Parliamentary Reporter
The Government is taking steps to revitalise the second-sale used car market in Jamaica providing more options for consumers selling their vehicles.
Finance and the Public Service Minister Dr Nigel Clarke on Tuesday announced proposed policy changes that are expected to take effect this year.
In his opening Budget Debate presentation in Parliament, Clarke said that second sales of motor vehicles by individuals are not currently captured in the calculation for gross domestic product (GDP).
According to Clarke, the reason for the seeming absence of registered car dealers in the second sale space is that currently the general consumption tax of 15 per cent is collected on the full sale price of a second-hand vehicle. However, when an individual sells it, the amount paid is a fixed fee of $12,000 or $18,000.
Clarke said that when the proposed change is implemented, it will result in the establishment of new businesses in Jamaica.
And in an effort to provide support to the small ruminants and pig industry, the Government is taking steps to remove the GCT payable on the importation of these live animals.
The measure is intended to improve local food security and provide a source of income and employment, especially for persons in rural Jamaica.
Clarke told the House that the agriculture ministry will support the importation of some 6,000 goats over a three-year period. The estimated GCT that the Government will be giving up is $160 million.
The finance minister also announced on Tuesday the elimination of GCT on the importation of horses, goats, sheep and pigs.
The horse racing industry is said to be facing significant risk from the declining numbers of high-quality breeding stock.
The Government will be giving up $53 million in revenue by eliminating GCT on the importation of the animals.
Clarke indicated that the proposal, which will take effect before the end of the first quarter, will improve the quality of horses coming into the island. It will also provide a boost to the horse racing industry, not only in terms of breed stock, but also mature horses will improve the quality of race events.
The Government is also providing incentives for investments in residential solar photovoltaic systems to increase the country’s use of renewable energy in electricity generation. In this regard, an income tax credit will be provided to employed and self-employed taxpayers for the purchase of a residential solar photovoltaic system.
It will cost the Government $100 million to implement this measure this year.