WESTERN BUREAU
CABINET HAS approved more tax incentives for established companies within the services sector, says Phillip Paulwell, Minister of Industry, Commerce and Technology.
The decision, made this week, will make such companies exempt from payment of Common External Tariff and General Consumption Tax on imports to be used in their operations.
Mr. Paulwell made the announcement yesterday at the opening of the Westcom Call Centre, Savanna-la-Mar, Westmoreland.
"We are making a serious effort to make Jamaica a more attractive and competitive services destination," Mr. Paulwell said. "This is in keeping with the benefits offered by other international business locations such as Dominica and Barbados that allow incentives to IFCs (International Finance Corporations) for a period of 10 years."
Companies which have been operating for 10 years and longer are already benefiting from duty-free treatment on imports. The prevailing concessional tax rates of 2.5 per cent on profits and gains on prescribed operations of an IFC will continue to be applied, he said.
Also, Cabinet has approved a provision in the International Finance Companies Income Tax Relief Act for financial and management services to be carried out by international business companies.
"Approval has also been granted for a change in the title of legislation for the International Companies Act to the International Finance and Management Services Incentive Act," Mr. Paulwell announced. "This is for the development of appropriate regulations governing the activities of trusts and other types of business activities."
Approval has also been granted for the elevation of the International Business Association Working Group to the status of an Industry Advisory Council. The council will provide policy advice on development and promotional services in the Internet services sector.
According to Mr. Paulwell, the objective is to have an integrated and diversified services sector focusing on linking industries such as software development, professional services, conventions, tourism and other business services.
