Tax reform document proposing reducing GCT

The phasing in of compulsory filing of income tax returns and electronic filing for large taxpayers as well as professionals is being proposed for implementation come January next year.

These are among the tax reforms recommended subject to the broadening of the General Consumption Tax (GCT) base.

According to a green paper on tax reform for Jamaica tabled by Finance Minister Audley Shaw in the House of Representatives on Wednesday, it is proposed that the standard GCT rate be reduced to 12.5% or 15%.

Other recommendations include the lowering of the statutory corporate income tax to 30% as well as amalgamating the Education Tax and the Personal Income Tax.

This is aimed at simplifying payroll taxes.

And Keith Collister, the Chairman of the Economic Affairs and Taxation Committee of the Jamaica Chamber of Commerce said the GCT can be reduced without causing any interruption in inflows to the country's coffers.

He said increasing the GCT base will guarantee more collections.

"The reason why that could be done without an excessive loss in tax revenues is because, at the moment, GCT does not encompass everything, a lot of things are exempt from GCT even now. For the proposal to work, whether it is 15%, 12.5% or even 10% it would require GCT to be on most items," Mr. Collister said Wednesday evening on RJR’s daily current affairs discussion programme Beyond The Headlines.