Yesterday, Jamaica House argued that despite the increase, the departure tax of J$1,800 (approximately US$20) remains among the most competitive in Latin American and the Caribbean.

According to Jamaica House, suggestions in certain quarters were that, internationally, the tax was already being collected at US$20 but only US$11 was being paid to the country, based on the exchange rate.

"This 45 per cent loss of revenue can no longer be absorbed, especially under the tight financial times the country and Government now finds itself," Jamaica House said.

Prime Minister Bruce Golding had previously argued that the decision to increase the departure tax was taken as it was the easiest to apply and collect while it would also have the least impact on people's purchasing power.

According to the prime minister, the Ministry of Finance and the Public Service through the financial secretary was working with the entities involved to "iron out the challenges".

Loud criticisms

The Government has faced loud criticisms since last Wednesday when it announced the increase in departure tax to take effect less than 48 hours later.

Officials in the travel industry argued that they would need more time to make the required adjustments.

However, the finance ministry responded that tickets purchased before the October 1 implementation date would not attract the increased departure tax.

Tax comparison