Thursday 20 February, 2020

Senate approves bill that increases GCT threshold for small businesses

Some 3,500 small businesses stand to benefit from the change that was first announced by Finance Minister Dr Nigel Clarke as part of a revenue package during his contribution to the Budget Debate in March 2019.

Some 3,500 small businesses stand to benefit from the change that was first announced by Finance Minister Dr Nigel Clarke as part of a revenue package during his contribution to the Budget Debate in March 2019.

The Senate on Friday approved an amendment to the General Consumption Tax (GCT) Act, which increases the threshold for companies to pay GCT from $3 million to $10 million dollars.

Some 3,500 small businesses stand to benefit from the change that was first announced by Finance Minister Dr Nigel Clarke as part of a revenue package during his contribution to the Budget Debate in March 2019.

In piloting the bill, leader of Government Business in the Senate, Kamina Johnson Smith, noted that it will reduce the administrative burden being faced by businesses.

“The amendments are intended to give effect to the policy ensuring the voluntary registration of persons who fall below the new threshold of GCT but who opt to remain as a registered taxpayer,” Johnson Smith explained.

The measure has meant that small businesses can spend less time on administration and focus more energy on growing their companies,” she added.

The bill had unanimous support but its passage came after a lengthy debate with both Government and Opposition senators arguing over which administration’s policies have done more for small businesses and ordinary Jamaicans.

The bill was approved by the House of Representatives last week Tuesday.

Get the latest local and international news straight to your mobile phone for free: