FOUR DAYS after Finance Minister Audley Shaw opened the 2009-2010 Budget Debate, Cabinet yesterday signed off on additional items that will now be subject to general consumption tax (GCT), which is set to pull in $7.5 billion in revenue.
A significant part of the revenue is expected to come from consultancy services supplied by non-resident Jamaicans. An informed government source told The Gleaner that the adminis-tration has projected between $3 and $3.5 billion from these services.
Consumption tax on computers and related parts, as well as printed matter will also generate consi-derable revenue, according to an informed source.
However, computers for educational institutions approved by the Minister of Education will receive relief or a waiver from the Minister of Finance.
According to a document released by the finance ministry yesterday, printed matter, saving those for religious and educational purposes, will now attract GCT. The commissioner of inland revenue has been charged with the responsibility of certifying which printed materials are for religious and educational purposes.
The tax on books drew the ire of the Book Industry Association of Jamaica (BIAJ), which yesterday called on the Government to reverse its position on printed matter.
Franklin McGibbon, chairman of the BIAJ, was disappointed that the decision to not tax books has been overturned by the Bruce Golding administration.
"This will have serious negative impact on education and, additionally, its implementation will be an administrative nightmare," he said.