October 8, 2020
Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, says preliminary numbers for the six-month period ending September 30 show that overall revenues were $8 billion or 3% higher than budgeted in the First Supplementary Estimates. The figures, however, were 18.8% lower than for the corresponding six months of last year.
Dr. Clarke was tabling the Second Supplementary Estimates of Expenditure for 2020/21 during Tuesday’s (October 6) meeting of the House of Representatives held at the Jamaica Conference Centre, downtown Kingston. The Second Supplementary Estimates proposes overall additional expenditure of $15.7 billion to generate a total expenditure budget of $853.7 billion.
Dr. Clarke informed that preliminary data show that the Income and Profits subcomponent was ahead of budget by 8% and behind last year by approximately 5%. In addition, Corporate taxation and Pay As You Earn (PAYE) performed ahead of budget by 16% and 8%, respectively.
“In fact, PAYE for the first six months of this financial year was ahead of PAYE returns for the corresponding period of last year by 3%. For the six months, preliminary figures indicate that Production and Consumption taxes were also up by 7% versus budget, but 14% lower than last year,” Dr. Clarke told the House.
“In this category, Special Consumption Tax (SCT) was up significantly vis-à-vis budget, though General Consumption Tax (GCT) receipts on local activity were 3% lower than budgeted and 16% less than the first six months of last year,” he added.
Also, revenue from International Trade taxes was lower than budgeted by 3% and lower than last year by 32% over the comparable period.
Consistent with the fall in trade volumes, Customs Duty, Stamp Duty and GCT on imports were, respectively, 7%, 28% and 1% lower than budgeted and 21%, 40% and 27% lower than last year.
In addition, consistent with the dramatic reduction in passenger flight arrivals, Travel Tax receipts were down by $9.5 billion or 80% on last year.
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