Stampduty relief - Gov't slashes taxes on imported meat, vegetables
published: Wednesday | September 29, 2004

By Robert Hart, Parliamentary Reporter

THE GOVERNMENT yesterday announced the slashing of duty on several food items in order to stave off the high costs of imported meat and vegetable, while the local agriculture sector rebounds from the devastation caused by Hurricane Ivan.

Phillip Paulwell, Minister of Commerce, Science and Tech-nology, told Parliament that Cabinet on Monday agreed to an interim duty regime for imported foods including chicken meat and some vegetables.

Stamp duties will be suspended and customs duties will be reduced to 40 per cent in an attempt to "assist the population to return to normalcy as quickly as possible and to ensure that there is no additional burden on consumers at this time," Mr. Paulwell said in a ministerial statement to the House of Representatives.

The items listed by the Minister are: chicken meat, leg quarters, legs and thighs, wings, tomatoes (fresh or chilled), cabbage, lettuce (fresh or chilled), and carrots. Other items, Mr. Paulwell said, will be added as the need arises.

"Presently, the compounded duty ranges between 86 per cent and 260 per cent," the Commerce Minister noted. "This means that duties on items will be reduced to only 40 per cent for the interim which will hold until November 30."

Mr. Paulwell, however, pointed out that the Jamaica Agricultural Society (JAS) will be given the opportunity to consult with its members to decide on some of the items to be given the reprieve. At the end of the November period, both the list and the duty rate structure will be reviewed.

Minister Paulwell added that the Government will be monitoring the importation and sale of food during the period to ensure that the temporary measures do not have a negative impact on the recovery of local production.

Both the Prime Minister and Minister Paulwell have sought to assure the public that there is 'no reason to fear' and no reason to horde food because distributors have guaranteed that there is enough basic food already on the island to take the country through to Christmas.

"The Government will not tolerate price collusion or gouging which robs the consumer of the benefits which this decision is expected to give to the people," Minister Paulwell warned.