CPJ taking aim at cruise shipping sector

WESTERN BUREAU:

Mark Hart, the executive chairman of Caribbean Producers Jamaica (CPJ), wants the government to waive taxes for locally produced goods that are sold to cruise lines. His recommendation comes as his company prepares to tap into the cruise shipping industry.

In an interview with The Gleaner following the recent opening of CPJ’s new US$10m distribution centre at the Montego Bay Freeport, next door to the Montego Bay Cruise Shipping Pier, Hart announced that his company’s next investment will be targeting the shipping industry.

“There is a lot of home-porting taking place right across the street, but we need proper legislation in place so that they (cruise lines) can get the benefit of the Jamaican product without the taxation that would apply to local distribution and sales,” he said, “because local produce attracts GCT (general consumption tax) and so forth.”

The CPJ chairman continued: “These cruise ships, they are not going to buy taxed stuff, Jamaican products! We really need to be treated as full export, no sales tax, no input tax,” added Hart.

According to the CPJ executive chairman, although there needs to be some discussion with companies that sell locally produced items to cruise ships and ports, he said the process to develop the legislation to support his call could be long and tedious.

“We know the political environment is good, but you know what it’s like to get things legislated and passed into law is very tough,’ said Hart. “CPJ currently distributes its products to all major hotels and restaurants in the booming tourism industry and boast about 20 per cent of the country’s retail market.”

According to Hart, he would love to see the 20 per cent stake in the country’s retail market move up an additional 15 per cent.

“We would love to see that go up to about 35 per cent at least. Now that we have the space, we can look to develop that side of the business and that will incorporate some of our manufactured items, to include other brands for various people,” noted Hart, in reference to the 165, 000-square foot space at the new distribution centre.