Minister of Finance Dr. Nigel Clarke.
KINGSTON, Jamaica – The reduction in the standard rate of General Consumption Tax (GCT) payable in respect to taxable goods and services is now in effect.
The reduction, which was announced in the recent Budget Debate by Minister of Finance Dr. Nigel Clarke, will see Jamaica paying 15 percent for GCT, down from 16.5 percent.
The new GCT rate was published in the Jamaica Gazette dated March 30, 2020, titled The Provisional Collection of Tax (General Consumption Tax) Order 2020.
In announcing the reduction Clarke had noted that this was the first cut in the GCT rate since it was introduced in 1991 that was not accompanied by GCT being applied to other areas.
“A cut in the rate of GCT will leave more disposable income in the economy which will boost economic activity, which would benefit all households and firms,” Clarke added.
Merchants have been reminded to make the changes in their calculations on the price of goods immediately.