Manufacturing in Jamaica > New Government Concessions

The Jamaica Manufacturers’ Association Ltd. (JMA) has over the years lobbied the government for concessions for the manufacturing sector.  In recent times, the JMA has been relentless in its efforts as the sector has been faced with greater challenges spiraling from the economic downturn. As a result, the Government has agreed to grant the following relief to the sector:   

• The Customs User Fees payable on capital goods and raw materials will be removed as of January 1, 2009.[1]

 

• The time allowed for depreciating the cost of capital equipment will be reduced from 2 years to 1 year, effective January 1, 2009.

 

• Government procurement policy will be adjusted to provide a 10% margin of preference to Jamaican-owned companies.

 In addition, the following concessions have been granted to the Productive Sector and small businesses: Productive Sector: 

• The International Development Bank (IDB) will provide US$300 million facility to offer loans to the productive sector through commercial banks and the EX-IM Bank in January 2009.

 

• Tax on dividends paid by all locally owned companies will be abolished on January 1, 2009.

 

• Transfer tax will be reduced on January 1, 2009 from 6 ½% to 5% to provide some stimulus to the real estate market and construction sector. 

 Small Businesses: 

• The Development Bank of Jamaica (DBJ) will be allocating $350 million through the Jamaica National Small Business Loans Limited to provide additional funds for the lending to small businesses and micro-enterprises.

 

• Funding of $150 million will be provided through the Jamaica Business Development Centre for on-lending at 10% to small and micro-enterprises for collateral requirements.  These must be for the production of goods or the provision of services – NOT trading.

 

• An additional $150 million will be provided at similar rates through designated Credit Unions for similar purposes.

 

• All government agencies will be mandated to ensure that at least 15% of their total procurement is reserved for small business and micro-enterprise suppliers.  These are defined as businesses or enterprises with an asset base of less than $30 million.

 

• Effective January 1, 2009, businesses with annual sales amounting to more than $3 million will be required to register under the GCT Act and submit monthly returns.

 The JMA will monitor the implementation of these concessions and anticipates that these measures will greatly assist your businesses.  

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