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Stamp Duty & Transfer Tax Cuts Brought Forward

Wed, Jul 29, 2009

General



In April of this year, the Minister of Finance and the Public Service – Audley Shaw – announced in Parliament that effective January 1, 2010, stamp duty would be reduced from 4.5% to 3%, and transfer tax from 5% to 4%. This was seen as an effort to help boost Jamaica’s ailing real estate market, however many thought that January 2010 was far too long to wait, and that the sector needed it now.

While speaking in Parliament yesterday however, Minister Shaw said that the Tax Administration Department of the ministry “has reported a drastic reduction in transactions resulting in further revenue loss and a slowdown in real estate business; consequently, the Cabinet has decided to bring the implementation date of the further reduction in Stamp Duty and Transfer Tax forward to August 1.

In retrospect, it was too long a time to seek to implement it by January 1, and there was more than anecdotal evidence that some persons were holding on and awaiting the new date and there is no question that there was also a level of depression,” Minister Shaw stated.

With this proposed implementation, the Stamp Duty and Transfer Tax will have been reduced by almost 50 per cent since this administration took office in 2007,” he added.

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