It’s a $29.43 billion tax package for 2026/27 Financial Year
/ Our Today
administrator
Most consumption taxes have been spared any increase, as the Andrew Holness administration this afternoon tabled a $29.43 billion tax package to help finance the upcoming 2026/27 $1.4 trillion national budget.
The bulk of the tax package will come from the continuation of the annual transfer $11.4 billion from the National Housing Trust (NHT) to the central government and levying a Special Consumption Tax (SCT) on non-alcoholic sweetened beverages to garner $10.1 billion.
There is to be an increase in the Environmental Protection Levy (EPL) rate to 0.8% from 0.5% and expanding the domestic base to garner to $3.63 billion while there will be a modification of the 20% duty concession on motor vehicles for public officials, which will rake in $1.3 billion.
In addition, there is to be an increase in the Special Consumption Tax (SCT) on litres of pure alcohol, raking in $1.6 billion while there will be an increase in the SCT on cigarettes to earn $1.1 billion. The final tax package item for the 2026/27 financial year is the imposition of General Consumption Tax (GCT) on digital services and intangibles to earn $0.3 billion in taxes and a further $4.2 billion in the 2027/28 financial year.
There is to be an increase in GCT rate on tourism activities to the standard rate of 15%, up from 10% in the 2027/2028 financial year. The tax package for the 2027/2028 is projected at $15.6 billion, comprising the GCT on digital services and intangibles for $4.2 billion in 2027/28 and the 15% increased GCT on tourism activities to raise $11.4 billion for 2027/2028.
Finance and Public Service Minister Fayval Williams outlined the new revenue measures in parliament this afternoon, shortly after she tabled the Estimates of Expenditure for 2026/27 during a brief sitting of the House of Representatives. This is the first time in 10 years that the Andrew Holding Government is imposing new taxes to take account of the damage and restoration caused by Hurricane Melissa.
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