GCT to be removed from imported raw foodstuff

The Government is removing the general consumption tax (GCT) charged on imported raw foodstuff, such as fruits and vegetables, in a bid to avoid trade sanctions, Finance Minister Dr Nigel Clarke has announced.

Opening the budget donate on Tuesday, Clarke noted that GCT is not currently charged on local produce.

However, he said the current situation contravenes World Trade Organisation rules on national treatment, and could be viewed as a measure aimed at giving protection to domestically produced raw foodstuff.

"Though this is a measure that emerges from trade-related matters, it will mean the opportunity to provide more affordable imported raw foodstuff to Jamaican consumers," Clarke stated.

The removal of the GCT on imported raw produce will take effect in the first quarter of the upcoming fiscal year and will cost the Government $2.4 billion in revenue.

In the meantime, Clarke said he has suggested that the agriculture ministry increase the cost of import licences to ensure more competition to the benefit of consumers.

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