Jamaica’s Tourism Minister Details New Waiver System

Jamaica’s Tourism Minister Details New Waiver System
By Alesia Edwards

Tourism minister Edmund Bartlett has revealed more details about the new waiver and concession package which will be granted to the tourism ground transportation sector. Finance Minister Audley Shaw indicated in his recent presentation of the 2011-2012 Estimates of Expenditure to Parliament that changes would be made to the duties charged on motor vehicles purchased by persons who operate in the tourism sector.

Addressing the 50th Annual General Meeting of the Jamaica Hotel and Tourist Association (JHTA) in Ocho Rios, St Ann, on Saturday, Bartlett said under the soon-to-be-implemented system the current discretionary waiver and import quota would be replaced by a more efficient system that will speed up waiver application and processing.

He said ground transportation operators in the sector would now apply to the ministry of tourism for the necessary waivers and the ministry would forward the relevant information to the Jamaica Customs Department for it to be granted. According to the tourism minister, under the new system car rental companies will enjoy a 10 per cent drop in the 30 per cent duty currently being paid.

He also said that no GCT would be payable on motor vehicles with engines smaller than 2.0 cc for petrol and 2.2 cc for diesel, and that registered GCT taxpayers who, under the current system paid GCT on the importation of motor vehicles, could submit claims for the amount spent for the period in which the activity took place. In addition, Bartlett spoke of the benefit of the new system to car dealers as opposed to individual importers.

"Buses with 15-24 seats imported by dealers will attract no duty for either petrol or diesel units, while those imported by individuals will attract five per cent for petrol units and no duty on diesel units," Bartlett said to rousing applause from JHTA members.

He said buses with 25 or more seats would not attract any duty, whether imported by dealers or individuals. The new rate for buses with up to 24 seats is less than the 30 per cent that is currently being charged.

On another issue, Bartlett said president of the Caribbean Hotel and Tourism Association Josef Forstmayr is to head a task force to look at what he described as hindrances to the competitiveness of destination Jamaica. He said the task force would look at several issues affecting the tourism industry, including regulations, legislation, fiscal challenges, and visa problems.

"I need that guidance to formulate the new policy drive for the next 20 years. That committee, when its work is done, will complement the Don Wehby committee, which is now doing the economic impact study of tourism on Jamaica's economy," Bartlett said.