With regard to PwC Jamaica’s preliminary analysis, it is important to note that some of the details in support of the various announcements are not yet available, and thus PwC Jamaica may still need to clarify and elaborate further on these measures in due course. Furthermore the contents of this analysis is based on information that was available at the time of writing, and whereas they have made all efforts to ensure its accuracy, it is possible that some of the details may be different from what is available at this time.

PwC Jamaica will be hosting a Post-Budget Briefing in conjunction with the Jamaica Chamber of Commerce (JCC) on 13 May 2011. At this briefing, they will examine the 2011/12 Budget in further detail, and consider its implications for the Jamaican business community. If you have any questions in relation to any matter, please contact any member of the PwC Jamaica tax team by calling (876) 922-6230.

Download PwC Jamaica’s Analysis Of Jamaica’s 2011-12 Budget (PDF format)

Walker said recently “people still have the barrel culture. So you find barrels are coming in, but people are not clearing them, because they realize it is more economical to buy stuff here. You also find that persons picking up a barrel may not be aware that there is a cost to clear it. And this cost is left up to them.” Typically he said that this cost is in the range of J$10,000.

The press release also stated that during Monday’s launch, a proof note will be presented to Dr. Denise Eldemire Shearer, widow of the late former Prime Minister.

The last time that the Bank of Jamaica introduced a new note was in 2000 when the $1,000 bill was put in circulation. Prior to that, the $500 bill was introduced in 1994.

Agriculture

1. [Animal feeds (excluding pet food) reinstated as zero-rated]
2. Hog wire, mesh wire and barbed wire.
2. Self-propelled agricultural equipment, agricultural tractors and implement, for attachment thereto, agricultural implements propelled by draught animals and agricultural device) designed to be carried by the operator thereof and parts for any of the foregoing.
3. Irrigation equipment and any other agricultural goods and equipment which the Minister may approve by notice published in the Gazette.
4. Fishing apparatus, gear, boats. engines, equipment and parts therefor.
5. [‘ Fertilizers, herbicides, fungicides, plant growth regulators, nematicides, rodenticides, veterinary preparations, and molluscides’ reinstated as zero-rated ]
6. [‘Insecticides for agricultural use’ reinstated as zero-rated]

Health

8. The following substances -
[(i) All drugs specified in the Fourth Schedule (List 4 Drugs) to the Food and Drugs Regulations, 1975’ reinstated as zero-rated]
(ii) All drugs used primarily in the treatment of asthma;
(b) diagnostic reagents used for the testing of dextrose in the blood and glucose, protein, ketones and pH in the urine;
(c) any of the following -
(i) topical antifungal preparations
(ii) scabicides and pedicuticides;
(iii) anthelmintics;
(iv) haemorrhoidal preparations in ointment or suppository form;
(v) analgesics and anti- inflamatory agents;
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(vi) surgical gloves, including disposable, sterile and those made of latex rubber;
(vii) cough and cold preparations
(viii) antacids;
(ix) band aid;
(x) anti- histamines;
(xi) preparations for acne and eczema;
(xii) olbas oil, vaso constrictors, vaso dilators and other drugs used to loosen congestion;
(xiii) ophtalmic drops and washes;
(xiv) antiseptics and disinfectants;
(xv) simple single constituent medicines packaged in small containers used for first aid;
(xvi) rubbing alcohol;
(xvii) bay rum.
2. Any –
(a) medical, dental, surgical, ophthalmic or veterinary instruments or components;
(b) [‘orthopaedic appliances, surgical belts, trusses, splints and other fracture appliances, artificial limbs, eyes, teeth and other artificial parts of the body, hearing aids, other appliances which are worn or carried or implanted in the body to compensate for any bodily defect or disability, canes and crutches designed for use by the handicapped and eye glasses and contact lens used for the treatment or correction of a defect in vision on the written prescription of an eyecare professional’ reinstated as zero-rated.]
(c) laboratory appliances (including electromedical apparatus) and apparatus used for Xrays or radiation from radioactive substances;
(d) water quality monitoring equipment and seals and equipment used by healthcare personnel;
(e) parts and accessories for any of the foregoing (except in respect of items in (b)).
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4. Medical and surgical prostheses including surgical implants and ileostomy, colostomy and similar abilities designed to be worn by human beings.
5. Artificial breathing apparatus for individuals afflicted with respiratory disorder.
6. Any medical equipment approved by the Chief Medical Officer.
7. Bandages and gauze.
8. Goods which are acquired by or on behalf of a private hospital.
9. Supply of services by a private hospital.

Books, Newspapers and Education

10. Printed matter, articles and materials classified under Tariff Heading 49.01 to 49.05 such as –
(a) brochures, pamphlets and leaflets for religious purposes and books other than schoolbooks and booklets
(b) newspapers journals and periodicals, whether or not illustrated
(c) children’s picture books and painting books;
(d) maps and hydrographic charts and similar charts of all kinds, including atlases, wall maps and topographical plans, printed globes (terrestrial or celestial).
11. (a) Stationery and educational apparatus and equipment (including those used for games and physical training) for use in a private educational institution.
(b) school buses which are purchased by or on behalf of a private educational institution.
(c) Goods purchased by a private educational institution.

Miscellaneous

12. Sports equipment (including clothing) specifically designed for use in the following sports -
(a) basketball;
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(b) boxing;
(c) cricket;
(d) football;
(e) hockey
(f) netball,
(g) table tennis;
(h) track and field;
(i) volley ball;
(j) dominoes;
(k) badminton;
(l) cycling;
(m) golf;
(n) lawn tennis;
(o) rugby;
(p) softball;
(q) squash;
(r) swimming.
13. Goods acquired by or on behalf of the Boy Scouts or Girl Guides Associations of Jamaica or any other youth organization.
14. Insurance payable in respect of buses used for public passenger transport.
15. Any payment of agency fees, commissions or other similar payment to a person who does not reside in Jamaica, in respect of arrangements made by that person for the transportation of goods to or from Jamaica.

Energy Saving Devices

16. The following lighting equipment -
(a) compact fluorescent lamps and ballast;
(b) fluorescent tube fixtures and tubes;
(c) circular fluorescent lamps;
(d) fluorescent ballasts;
(e) high intensity discharge fixtures and bulbs.
(f) fibre glass panels for skylighting.
17. Automated, electronic or computerized lighting control systems including occupancy sensors and photocells for such systems.
18. Solar panel’ and tubes for solar water heating systems.
19. Solar cells designed to produce electricity from the sun.
20. Apparatus or machinery designed to produce motive power, heat, light or electricity through the utilization of renewable sources of energy, for example, sun, wind and water.

Coverings and Containers

21. Coverings and containers designed for the packaging of agricultural goods or supplied to a manufacturer or producer.

GOODS PREVIOUSLY EXEMPT FROM TAX

22. Coffins.
23. Freshly squeezed fruit juices.
24. Ice
25. Marl, sand, gravel, stone and top soil (to be taxed at 12 1/2%)
26. Processed cheese packaged by a manufacturer in tins of 1 kilogram or more.
27. Margarine
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28. Black pepper.
29. Instant coffee.
30. Tea.
31. Chocolate- flavoured drink mix.
32. Matches.
33. Toilet paper.
34. Oral and dental preparations including toothpaste, denture powder and denture fixatives.
35. Soaps including medicated soaps.
36. Synthetic detergents.
37. Laundry bleach.
38. Floor polish.
39. Disposable protective bed pads.
40. Tomato ketchup.
41. Mosquito destroyer.
42. Insect sprays.
43. Computer Equipment

SERVICES PREVIOUSLY EXEMPT FROM TAX

44.The following operations:
(a) the installation in any building or structure of systems of heating, lighting, ventilation, power supply, drainage, sanitation, water supply, fire protection, air conditioning, elevators or escalators
(b) the internal cleaning of buildings and structures so far as carried out in the course of their construction, alteration, extension, repair or restoration;
(c) painting the internal or external surface of any building or structure.
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45.Transportation of goods within Jamaica.
46. Services rendered by an undertaker in relation to burial or cremation.
47.Activities for which an admission fee is charged carried out by any cultural organization
48. Services rendered free of charge to members of a business or professional organization, the members of which pay a membership subscription.
49. Services rendered by a charitable corporation or charitable association or a service club, or a home for the aged.
50. Repairs to agricultural equipment, tractors, implements, and aircraft and vessels used in international transportation.
51. Services rendered by a registered trade union
52.Services rendered under a contract of health insurance and life assurance
53.Services rendered by an attorney-at-law in relation to criminal matters and litigation concerning the liberty of persons.
54. Services rendered by a corporation as defined in the Registration (Strata Titles) Act in pursuance of the powers and duties specified in that Act.
55.The provision of cold storage facilities for foodstuff.
56. Aerial spraying of agricultural crops.
57. Services rendered in relation to the Betting, Gaming and Lotteries Act.
58. The management of a superannuation scheme.
59. The rental or lease of land used for agricultural purposes or as a building site.

Major Tax Measures in Jamaica’s 2009/10 Budget:

1. Effective April 27, 2009 tax on fuel will be increased by $8.75 per liter. Also customs user fees on fuel imports other than those in the PetroCaribe Agreement will be increased from 2% to 5%.
2. Broadening GCT base to include some currently tax exempted items.
3. The minimum tax threshold will be doubled from the current level of $220,500 to $440,000. The increase will be staggered with the first increase taking effect July 1st to $320,000 with the second increase to $440,000 effective January 1st 2010.
4. The imposition of withholding tax of 33 1/3% on dividends for non resident share holders.
5. Transfer tax will be decreased from 5% to 4% while there will be a stamp duty reduction from 4.5% to 3%, both effective January 1 2010.