Local businesses which were looking to save more due to a reduced asset tax will have to wait a little longer.

Tax Administration Jamaica (TAJ) on January 27, 2022 said it had been advised by the Ministry of Finance and the Public Service (MOFPS) that the proposal to reduce the rate of the Assets Tax has been delayed.

 

First announced in Ministry Paper No. 14/20 dated March 10, 2020, the reduction to 0.125 per cent will not take effect for the year of assessment 2022 as previously planned. TAJ stated that the current Assets Tax rate of 0.25 per cent will, therefore, remain in effect.

 

“The deferral of the rate reduction is as a result of the current economic uncertainty, due to the prolonged COVID-19 pandemic,” the tax authority outlined in a notice on its website.

 

According to the TAJ, the effective date of implementation will be announced later.

 

The proposal to reduce asset taxes was part of an $18-billion tax reduction package announced back in 2020. It included reduction of the general consumption tax (GCT) rate from 16.5 per cent to 15 per cent.

https://www.jamaicaobserver.com/news/asset-tax-delayed_243021