Mark Myers, president of the Jamaica Chamber of Commerce at left, responds to a question following the JCC's monthly board meeting Tuesday. Beside him is past president, Sameer Younis. - Ricardo Makyn/Staff Photographer

Susan Gordon, Staff Reporter

The Jamaica Chamber of Commerce warned yesterday that the $1.2 billion in taxes to be paid by companies under the new environmental levy is onerous on businesses and would also hit consumers in their pockets, suggesting that price increases were inevitable.

In fact, the chamber was harsh in its criticism of Finance Minister Dr Omar Davies saying the 0.5 per cent levy on imports was another disguised Custom User Fee.

JCC president Mark Myers said yesterday at the trade agency's board meeting that there would be at least a one per cent pass through to businesses, as businesses dig deeper to pay the new charge, even though Davies announced the levy as a deductible expense.

The Finance Minister noted that after four years of discussion of how to implement the Environmental Levy, without consensus, he opted to mimic other Caribbean countries which levy an average charge of two per cent on imports, citing Barbados as example.

"We do not intend to go that far," said the minister. "Therefore, the Government proposes to impose an Environmental Levy equivalent to 0.5 per cent of the CIF value of all imported goods."

The planned implementation date is June 1.