The 1.5% reduction in the General Consumption Tax, GCT, announced by the government last month takes effect today.

Finance Minister, Dr Nigel Clarke, made the announcement when he opened the 2020/2021 Budget Debate in the House of Representatives last month.

Dr. Nigel Clarke, Finance Minister, speaking in Parliament during last month’s Budget Debate.

At that time, he said the move was the first pure cut in the GCT rate since the tax was introduced approximately 30 years ago.

The Finance Minister explained that this cut will not be accompanied by the imposition of taxes in other areas.

Dr Clarke also said the potential revenue loss from the reduction in the GCT is approximately $14-billion.

It was among a raft of tax cuts announced by the Andrew Holness- led administration for the 2020/2021 fiscal year, which begins today.