The Government has delayed the taxing of rental allowances that was scheduled to take effect on July 1.

According to the Ministry of Finance and the Public Service, the new implementation date is August 1.

The development comes hours after The Gleaner/Power 106 News reported that there was widespread confusion among some employers because of the Government's delay in completing the legislative requirement to start taxing rental allowances this month.

More money

The decision to tax accommodation allowance was announced by Finance Minister Audley Shaw during his contribution to the 2009-2010 Budget Debate, as part of measures to raise more money to run the country.

However, a finance ministry official said yesterday that the implementation date for taxing preferential allowances has now been pushed back to August 1.

As a result, rental allowances and gratuity for hotel workers will not be taxed this month as was expected.

Up to yesterday morning, several employers had gone ahead and imposed the tax on the allowances, but others had not.

Tax expert Ethlyn Norton-Coke chided the finance ministry for the manner in which it was handling the matter.

"Why is it that since the announcement from April 17 ... we do not yet have any legislation and taxpayers do not have the way forward?" she queried.