Banks in Jamaica will forgo the reduction of the asset tax for a year, said Finance Minister Dr Nigel Clarke in Parliament today, March 17.
The decision will make an additional $3 billion available to the Government’s COVID Fiscal Contingency, bringing the total amount to $10 billion.
The reduction in asset tax was announced by Minister of Finance and the Public Service Dr Nigel Clarke during his Budget Debate presentation last week and would have been implemented on April 1.
” Working together, supporting each other, Jamaica will overcome this. These fiscal stimulus measures will give us the best opportunity for our eventual economic recovery.”– Minister of Finance and the Public Service Dr Nigel Clark
He said “the asset tax is a tax on consumers and not good for monetary transmission. However given the impact of the measures taken to protect the health of the Jamaican people we will be accelerating the intervention and deploying it directly to those who need it most.”
The minister added the contingency is for eventualities and “not a commitment to spend.”
The Finance Minister also announced other measures that the Government will take to mitigate the impact of the coronavirus.
Among those he presented in the House of Representatives are:
Dr Clarke said implementation details and accountability mechanism for the respective measures are being finalised.
“An adverse economic impact from COVID-19 is unavoidable. However, the Government will implement a range of economic policy tools, to help cushion against the effects. Working together, supporting each other, Jamaica will overcome this. These fiscal stimulus measures will give us the best opportunity for our eventual economic recovery.”