By John Myers, Staff ReporterTHE GOVERNMENT has granted the island's two lottery companies a moratorium on the May 1 deadline which would have required them to start paying General Consumption Tax (GCT) on their operations.
The Gleaner was told yesterday that Jamaica Lottery Co. Ltd., sellers of "LOTTO", "PICK3" and "Three Way Drop Pan", and Supreme Ventures Ltd., sellers of "CASH POT", "LUCKY 5" and "DOLLAZ" were given "three to four weeks" in which to make adjustments to accommodate the new tax.
However, this could not be confirmed by the Ministry of Finance. When Cordel Braham, the ministry's public relations officer, was contacted yesterday, he said he was not aware of the moratorium. The GCT on gaming is part of the Government's strategy to generate revenue for its $262 billion budget.
Howard Mitchell, chairman of the JLC, said the company was in discussions with the Government to assess and seek clarification on the recently implemented tax.
"We have asked for time to study the implications of it (to determine if) we have to or if we can (accommodate) it," Mr. Mitchell said. He indicated that the tax would most likely be charged on ticket sales. The imposition of the tax on the gaming industry was "unfortunate (and) we are not sure it's practical", he said.
Suzette Smellie-Tomlinson, public relations and marketing manager of Supreme Ventures, said that while the tax would have an impact on the industry, her company would comply. She said there was no indication the tax would be waived or removed.
It was not clear if the moratorium was extended to horse-racing.
William Chin See, chairman of Caymanas Track Ltd., said that his company was still not sure how the taxes would be implemented. He said CTL was yet to receive a response to a letter sent to the Finance Minister seeking clarification on the matter.
In an earlier interview with The Gleaner's Track and Pools magazine, Mr. Chin See said he was not clear "whether it (the tax) will be added to the cost of a ticket, making it $11.50 or what..." He said the imposition of the tax would affect the company's sales and would cost it to reprogramme its entire computer system to enable it to make the necessary calculations.
And the Incorporated Master-Builders' Association of Jamaica has scheduled a meeting with representatives of the Finance Ministry for today at its Oxford Park Avenue headquarters, New Kingston.
The association is seeking clarification of aspects of the new tax regulations which would be applied to some items in the construction sector that previously were not taxed, in addition to those operations as defined under the Contractors' Levy Act.
