Gov’t Strengthening Manufacturing

Businesses involved in manufacturing are being encouraged to leverage targeted incentives being provided by the Government to increase capital investments in advanced tools and infrastructure and drive operational competitiveness.

Speaking during a tour of the Sanmerna Paper Products factory on Ashenheim Road in Kingston on Wednesday (May 6), State Minister for Industry, Investment and Commerce, Hon. Delano Seiveright, said that “the Government is very keen on enhancing the manufacturing industry”.

“Manufacturing, we believe, is critical to Jamaica’s growth story going forward in addition to tourism and other industries,” he added.

Among the incentives is the Productive Input Relief (PIR) programme, which provides a 50 per cent reduction on Customs Administrative Fees (CAF) and other relief on essential inputs used in manufacturing.

“Our Productive Input Relief allows for duty-free concessions, customs fee concessions, and administrative fee concessions,” Mr. Seiveright said.

Companies granted manufacturing status under PIR enjoy duty-free importation of approved inputs, General Consumption Tax (GCT) deferral on imports (granted by Tax Administration Jamaica), access to complementary fiscal incentives, including the Employment Tax Credit, and revised Capital Allowance and Loss Carry Forward Schemes.

The PIR facility covers five categories of items critical to business operations. These are raw materials; intermediate goods; consumables; packaging items; equipment, machinery and spare parts used in production, quality assurance, and testing.

“We have also implemented the Accelerated Capital [Allowance], which allows for concessions for businesses so that they can get back their capital quickly and pump more money into the development and expansion of their businesses,” Mr. Seiveright informed.

The regime encourages private-sector investments by allowing firms to write off major investments faster, thereby improving cash flow.