Finance Minister, Audley Shaw, says the General Consumption Tax to be charged on group health insurance, as of next month, will be tax deductible.
He says this will have the effect of reducing the tax burden of compliant businesses by as much as 33-percent.
The 16.5-percent GCT charge of group health insurance forms part of the government’s move to plug a $13.5-billion hole in the 2017/2018 budget.
Minister Shaw yesterday suggested that the average employee will pay little in additional taxes.
Meanwhile, Minister Shaw says he’s assured the Jamaica Hotel and Tourist Association, JHTA, that the government does not intend to take away the money from the Tourism Enhancement Fund, TEF.
The JHTA has raised concerns over the intention of the government to redirect revenues destined for the Fund to the coffers of central government.
Audley Shaw was speaking during yesterday’s closing of the 2017-2018 Budget Debate.