Jamaica’s PM Hints At Changes To Bank Levy

KINGSTON, Jamaica, Apr 29, CMC – The Jamaica government Tuesday hinted at the possibility of amending a controversial tax on bank withdrawals with Prime Minister Portia Simpson-Miller saying her Finance Minister Dr. Peter Phillips would address the issue when he winds up debate on the J$540.1 million (One Jamaica dollar=US$0.004 cents) budget on Wednesday.

“This year there has been a small revenue package presented by the Minister of Finance, concerns have been raised, we have listened, I have spoken to the Minister. We have discussed (the matter) at the Cabinet and the Minister of Finance is to address the issues that have been raised when he closes the debate tomorrow,” she told legislators as she made her contribution to the budget debate.

The government had initially indicated last week that it intends to receive J$2.5 billion in revenue from the new levy on the use of ATMs/ABMs, electronic banking, point of sales, cheques and internet transfers when the measure goes into effect, June 1.

The levy on withdrawals from deposit-taking institutions and security dealers will be calculated on a graduated rate system, with withdrawals less than one million being subjected to a 0.1 per cent tax.
Phillips said the measure was expected to bring in revenue estimated at J$2.25 million this fiscal year, and would provide the bulk of the revenue in new taxes.