Kingston, Jamaica – An agreement has been reached between the Jamaica Hotel and Tourist Association, JHTA and the Government on tax measures to be imposed on the tourism sector under the 2012-2013 Budget. This follows discussions convened by Minister of Tourism and Entertainment, the Hon. Dr. Wykeham McNeill following a request by the JHTA for further dialogue on the recently announced tax measures. The proposals that were agreed on will ensure that the revenue anticipated in the tax package announced by the Minister of Finance and Planning the Hon. Dr. Peter Phillips will be maintained.
The agreement will see the introduction of a US$ 20 fee for each arriving passenger, whose trip originates abroad, as of August 1, 2012. Effective September 1, 2012 an accommodation tax will be introduced for each occupied room per night of US$ 1 for properties with less than 51 rooms, US$ 2 for hotels with 51-100 rooms, and US$4 for hotels with 101 rooms and above. The modified alcohol regime for tourism will remain as previously announced, while the GCT rate for tourism remains at 10%.
As was previously announced, effective September 1, 2012, the current tax free expenses of commissions and transportation for the tourism sector will no longer be allowed. However the definition and treatment of these items will be subject to further discussions prior to implementation.
Minister McNeill expressed pleasure at the fact that an agreement was reached citing that “the discussions have been very fruitful and were conducted in a very rational manner. I am convinced that these measures provide a win-win situation as they will ensure that we meet our revenue target while protecting our industry especially our small properties. I want to commend the JHTA and other stakeholders who put forward alternative proposals from which we could eventually secure a workable compromise. I also wish to acknowledge the hard work of the technical teams from the Ministry of Tourism and Entertainment and the Ministry of Finance and Planning, who worked tirelessly to ensure the success of this collaborative effort.”
President of the JHTA, Mrs. Evelyn Smith expressed that “the measures were arrived at in a spirit of co-operation and were approached with the aim of arriving at an outcome that is beneficial to all parties involved.”
