Durrant Pate/Contributor

Finance Minister Fayval Williams delivered what she called a 21-point “Good News” budget presentation in the House of Representatives on Tuesday (March 11), arguing that there is a little bit for everyone to benefit.

However, pollical pundits argue that the give-backs announced by the minister in Parliament are not surprising considering that Jamaica is now in an election year, where both the Jamaica Labour and People’s National parties are jostling to win voter support ahead of the polls slated to be held by September this year.

The first ‘good news’ she unveiled in her maiden budget debate is benefits to all government ministries for roads, police stations, irrigation, expansion of water infrastructure, housing, hospitals, and retro-active payments for government workers.

‘Good news’ number two is an immediate benefit for tertiary students, who will see a longer payment period for new university loans and widening the service offering to allow the loans to pay for tuition, housing, books and supplies, a laptop and meals for students. 

Assistance to MSMEs and foreign companies

‘Good news’ number three is the allocation of J$2 billion to the Development Bank of Jamaica (DBJ) for lending to micro-, small- and medium-sized enterprises (MSMEs). The fourth ‘good news’ announced by Minister Williams is an increase in the general consumption tax (GCT) threshold for MSMEs from J$10 million to J$15 million.

‘Good news’ five is the imposition of an accelerated capital allowance for any sized business, and the sixth is the launch of the Jamaica Stock Exchange’s (JSE) micro market. She also announced a dividend-paying investment opportunity in the sale of the government’s shares in TransJamaican Highway.

The eighth good news mention by the finance minister is the reduced tax rate on dividends received by non-resident companies from 33-and-a-third to the same as the local rate, which is 15 per cent,  Good news #9 is reduced tax rate on dividends received by non-resident individuals from 25 per cent to the same as the local rate which is 15 per cent and individuals to the same rate as Jamaicans. 

Electricity good news

‘Good news’ is in the electricity sector, where she advised the parliament that Government will restructure the GCT on electricity to make power more affordable and give those who want legal access to electricity the opportunity to do so. Williams announced the commitment to reduce the GCT rate on electricity to seven per cent and eliminate the 150kwh threshold for postpaid residential, which she adds is on track for implementation by JPS, starting on May 1. 

Additionally, for postpaid residential customers who consume 250kwh or less, they will see a seven per cent rebate and a three per cent subsidy. ‘Good news’ #11 is that the government has allocated J$1 billion to assist the first 20,000 first-time JPS pre-paid customers who sign up for pre-paid meters.

According to Minister Williams, “This J$1 billion will go towards paying for house wiring and inspection in order to get those with illegal connections to get legally and safely connected to the JPS grid. We know that the cost of house wiring and inspection can be prohibitive for many persons and so as a caring government we are absorbing that cost in order to begin to cauterise this massive electricity theft problem.”

‘Good news’ #12 is that the first 20,000 new prepaid customers will get a J$4,000 credit for electricity per month for six months under the GOJ House Wiring and Inspection Programme that will be implemented by the Jamaica Social Investment Fund (JSIF). From that credit, J$2,000 will come from the JPS and the other half will come from the government. 

JPS and JSIF will jointly identify the vulnerable communities and provide the sign-up procedures. To give a sense of the value of the J$4,000 credit, it is worth 50 per cent of the average monthly bill of a typical prepaid customer currently on the JPS system. 

‘Good news’ #13 is that police will no longer be dispatched on consumers to pull down illegal throw-ups, while ‘Good news’ #14 is that consumers will be able to buy electricity when they need it and in the amount they can afford. 

‘Good news’ #15 is that pre-paid electricity is not just for vulnerable communities or persons not legally connected now. Any individual customer can buy the pre-paid service with GCT also remaining at seven per cent. 

Tax benefits unveiled

In unveiling ‘Good news’ #16, Minister Williams says she has asked the commissioner of taxes to have a tax office opened in every parish on a Saturday to ease the congestion during the week and make it easier for taxpayers to fulfil their payment obligations.

‘Good news’ #17: The government will be partnering with the providers of automated teller machines (ATMs) to install additional machines in areas that are secure and convenient, especially in rural areas. 

‘Good news’ #18 is that the CHASE Fund has decided to remove the need for guarantors for recipients of government scholarships and grants up to J$2 million (cumulatively). ‘Good news’ #19 is that the PAYE threshold will be increased in tranches from J$1.8 million to J$2 million over three years starting April 1. 

‘Good news’ #20 is that the government is not running a budget deficit heading into an election year, while Williams celebrated ‘good news’ #21 as she delivered a balanced budget and the imposition of no new taxes.