Eight Years of No New Taxes; Initiatives to Reduce Energy Bill  

 

• No new taxes will be introduced to finance the Government’s $1 trillion budget for the upcoming fiscal year. This was announced by Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, as he opened the 2023/24 Budget Debate in the House of Representatives on Tuesday (March 7).
• This is the sixth consecutive fiscal year in which the government has not introduced any new taxes and the eighth year of no new net taxes. Instead, expenditure will be financed with tax and non-tax receipts.
• In terms of new initiatives, Dr. Clarke announced that the Income Tax Act will be amended to incentivise households to purchase solar power generation systems. It will give a 30% tax credit on the cost of these systems up to a maximum cost of $4Mn.
• Whilst the loss in potential revenues from the implementation of this measure was estimated at $100 million, the Minister posited that the potential losses would be offset by positive socio-economic gains, including environmental gains from reducing carbon dioxide emissions, diversifying local energy supply and reducing the demand for crude oil.
• Given the increasing importance of Environmental, Social and Governance (ESG) concerns locally and internationally, environmental initiatives benefiting the productive sector would also be welcomed. Credits made available to the productive sector for environmental and social initiatives have the potential to be a game-changer in the way that Jamaican companies prioritise environmental and social issues, in keeping with international best practices.

(Source: PWC)