More than 30,000 taxpayers are expected to benefit under the Special Arrears Settlement Programme, says Minister of Finance and the Public Service, Hon. Fayval Williams.
The programme, which was introduced by Tax Administration Jamaica (TAJ) in January, aims to encourage taxpayers with outstanding principal sums for selected tax types to pay these by March 31, 2025.
Tax types on which penalties, interest and surcharges will be waived are Education Tax, Corporate Income Tax, individual income tax, Pay As You Earn (PAYE), Special Consumption Tax, General Consumption Tax, Asset Tax and Partnership Income Tax.
“Already, TAJ is in touch with over 7,500 taxpayers. So if the principal amount is paid by the deadline, the Government of Jamaica will waive any unpaid interests, any penalties, any surcharges.
If your case is under objection, you can still qualify for the waiver; if your case is under appeal, you can still qualify for the waiver,” Minister Williams said while addressing Wednesday’s (February 19) post-Cabinet press briefing at Jamaica House.
She informed that the programme will alleviate the financial burden on taxpayers by providing an opportunity for them to clear their debts without the additional costs typically associated with late filing and payments.
“By waiving these extra charges, the programme promotes timely compliance and supports taxpayers in achieving financial stability that will foster continued voluntary compliance. When you look at the tax amount that is outstanding and all the associated penalties, interests and surcharges… it’s approximately $139.3 billion… 42.5 per cent of that is greater than seven years old,” Mrs. Williams informed.
“As a Government, we were seized with the need to structure the Special Arrears Settlement programme. When we consider the many shocks that individuals and businesses have endured over the last 10 years, and also to help the TAJ reduce the arrears, we had to ask the TAJ to structure this programme,” she added.
Mrs. Williams noted that some of the shocks that businesses and individuals have suffered in the last 10 years include nine weather events, among these, droughts, heavy rains, tropical storms and hurricanes, as well as the COVID-19 pandemic.
“If you look across the world at tax administrations, the standard is to have no more than 10 per cent of the tax collected in arrears. Here in Jamaica, we are at about 23 per cent. So we really need this programme to help us as well,” she stated.
Minister Williams encourages Jamaicans to take advantage of the tax relief programme being provided by the Government and urges persons to call TAJ for further details or visit their website at www.jamaiacatax.gov.jm.