Government Exploring Bold Initiatives for Inclusive Economic Growth

Government Exploring Bold Initiatives for Inclusive Economic Growth

The Government of Jamaica is currently evaluating a range of forward-thinking initiatives designed to solidify the nation's economic stability while fostering transformative, inclusive growth. These initiatives are aimed at addressing legacy challenges, including the 30 years of underinvestment in infrastructure resulting from the 1990s FINSAC financial sector crisis, which cost the country 40% of its GDP and severely constrained fiscal space for critical investments.

Prime Minister Andrew Holness emphasized that these ideas are under careful review to assess their fiscal implications before formal adoption.

Key proposals unveiled by Prime Minister, Dr, the Most Honourable, Andrew Holness at a policy brief on Tuesday, November 19, 2024 include:

• Urban Renewal Tax Credit: Expanding the tax credit to incentivize private investments in underserved areas, promoting economic activity and community development.
• National Infrastructure Fund: Establishing a vehicle for funding public-private partnerships, allowing institutional investors to contribute to critical infrastructure projects.
• Accelerated Tax Write-offs for Technology Investments: Providing tax benefits to encourage businesses to modernize and adopt advanced technologies, enhancing productivity and competitiveness.
• No Tax on Tips: Removing taxes on tips as a gesture to reward service excellence in industries such as hospitality.
• Increase in GCT Threshold for Small Businesses: Building on the 2019 threshold increase, further adjustments aim to ease the tax burden on small enterprises.
• Payroll Tax Simplification: Consolidating payroll taxes into a single deduction to streamline the process for employers and employees alike.

The Prime Minister reiterated the government's commitment to maintaining fiscal discipline while pursuing growth policies, stating:

"Economic stability is the foundation, not the destination. As we pivot to growth, our focus is on bold but prudent measures that ensure all Jamaicans reap tangible benefits."

These proposals form part of the government's broader vision, as outlined in the recently launched ASPIRE Jamaica strategy, to achieve economic independence and robust growth.