Chris Zacca, the president of the Private Sector Organization of Jamaica, has called for reforms to the country's tax regime.
Zacca believes that the government should remove input taxes for exporters and lower corporate income tax to 15 percent in order to eliminate "a host of complex distortionary incentives and create a globally competitive economic environment for investment in Jamaica."
Exceptions to the lower rate of corporate income tax would be made for "financial institutions and utilities, as well as for passive income such as income earned on deposits and investments in paper, such as government bonds," Zacca said.
The Jamaican government has already cut corporate income tax for financial institutions to 25 percent from 33.33 percent, but Zacca argues that further reduction is needed.
About the proposed removal of input tax for exporters Zacca said: "We believe that there should be no taxes on inputs to productive enterprises that have the potential to sell goods and services to the international market. These would include, but are not limited to, manufacturing, tourism, ICT, and logistics.".
TAGS: environment | tax | corporation tax | Jamaica | manufacturing | tax reform | services
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