Reduce taxes on the banking sector.
That’s the recommendation from the International Monetary Fund, IMF, in its most recent staff report on Jamaica.
Financial institutions currently pay a rate of 33-percent in Corporate Income Tax, CIT, compared to other businesses, which pay 25-percent.
IMF Resident Representative to Jamaica, Dr. Constant Lonkeng Nguoana [GWAA-na] says reducing CIT for banks is a possible medium term measure for the government.
The IMF report says authorities are examining the structure of financial sector taxation, with a view to reducing distortionary transaction taxes.
According to Dr. Nguoana, this means bringing taxes down for the sector.