By Lynford Simpson, News EditorIF THE recommendations of the Parliamentary Tax Measures Committee are accepted, several additional items could become exempt from General Consumption Tax (GCT).
The report of the committee, which examined the 2003/04 Budget presented in April by Dr. Omar Davies, the Finance and Planning Minister, was tabled yesterday in the House of Representatives.
It has recommended that GCT be removed from goods and equipment for registered independent schools; from veterinary services; from charitable services rendered by charitable corporations and from the maintenance fees charged by residential strata corporations.
The tax will remain on maintenance fees for commercial strata corporations.
MORE RECOMMENDATIONS
Also, the committee recommended that all books be zero-rated. Previously, only some books were exempted. There has also been a roll-back of GCT on fishing apparatus and outboard motors up to 75 horsepower. This, in addition to a zero-rating for all "list 4" drugs which means that "almost all drugs used in the treatment of asthma are zero-rated." Services offered by private hospitals and diagnostic laboratories have been exempted.
At the same time, the committee has recommended that the stamp duty to in-bond merchants be increased to eight per cent instead of 15 per cent. It also recommended the removal of GCT from life premiums but suggested an increase in the income tax on premium income from 1.5 per cent to three per cent and an increase in income tax on investment income from 7.5 per cent to 15 per cent. The GCT on health premiums would be applied to new policies effective June 1 this year, and on renewal date of existing policies. This recommendation was not supported by one member of the nine-member committee.
AGAINST GCT ON LEGAL SERVICES
Not supported by the committee was the call by the Jamaican Bar Association for the GCT to be removed from legal services in criminal cases. Three members did not support the recommendation.
The Bar Association had argued that the State "prosecuted and brought persons before the court and it was unfair for the State to then tax persons who sought to secure legal representation to defend themselves."
"That conflicted with the constitutional right of free access to the courts and the freedom to legal representation of one's choice," the association said.
All books and charitable services to be exempted
