Williams defends tax on vehicle duty concession for public sector workers

Finance and Public Service Minister Fayval Williams today argued that the Government’s move to tax public sector workers who import vehicles under the duty concession regime will bring greater parity to the market.

Williams made the comment while responding to a question at today’s meeting of the Standing Finance Committee, which is examining the budget.

Member of Parliament for St Ann South East, Dr Kenneth Russell, made enquiries about the proposed modification of the 20 per cent duty concession on motor vehicles for public officials.

Civil servants currently enjoy a 20 per cent duty concession and are exempt from paying the Special Consumption Tax (SCT) and General Consumption Tax (GCT) on the vehicle. However, starting May 1, GCT will now be imposed.

The measure is expected to bring the Government $1.3 billion in revenue.

Commenting on the tax measure, Williams said she had been reliably informed that the concession did not arise from an agreement between unions and the Government.

She told members of the committee that the benefit should have been removed because of the wage restructuring that increased public sector wages closer to market rates.

The finance minister said the 20 per cent concession will remain, but 15 per cent GCT will now be applied.

She said ordinary Jamaicans have to pay the various taxes to import vehicles into the country, adding that the Government was “trying to equalise things across society.”

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