Local manufacturing sector gets large benefits

The Ministry of Industry, Investment and Commerce has announced that, for fiscal year 2021-2022 the Government’s Productive Inputs Relief (PIR) resulted in $109,290,084,368 worth of duty and tax relief to the local manufacturing sector.

“We have been very deliberate about creating avenues for real growth in domestic production and exports,” said Senator Aubyn Hill, minister of industry, investment and commerce.

“As at August 2022, some 600 Jamaican companies have been benefitting under the regime,” the minister continued, noting that individuals and organisations can apply for ‘Manufacturing Status’, which provides relief on import duties, additional stamp duties, customs administrative fees and other taxes. The facility also provides deferment on GCT.

“This approximately J$10 billion represents delayed revenue collections by the government. We understand that one way for Jamaica’s economy to grow even further is to invest in and build more vibrant and productive sectors in manufacturing and exports.”

“We need to deploy greater perseverance, innovation and a relentless dedication to export and creating new products and services that will make us competitively successful in overseas markets.” – Senator Aubyn Hill, minister of industry, investment and commerce

“I want to see more manufacturers utilise this arrangement,” the minister said.

“But not just because of the immediate cost saving it provides for their operations. Look at the potential for businesses to give greater attention to product development, research and development, staffing and expanding exports.”

He said the imbalance in Jamaica’s imports versus exports can be partly addressed if the cost to build and maintain strong manufacturing operations in Jamaica is made more affordable.

“In 2021, we imported US$5.975 billion worth of products and services. In the same year we exported US$1.441 billion. This means that, for the period, our negative trade gap was in excess of US$4.5 billion. We need to deploy greater perseverance, innovation and a relentless dedication to export and creating new products and services that will make us competitively successful in overseas markets.”

BUSINESSES INVITED TO CONTACT MINISTRY TO BENEFIT FROM SCHEME

The Productive Inputs Relief is part of the government’s Fiscal Incentive Regime and was introduced in January 2014 to simplify and streamline the process of granting government fiscal incentives to companies and individuals across growth sectors including manufacturing, agriculture, tourism, health and the creative industries.

The ministry has invited more businesses, especially those not yet benefitting from the scheme, to make contact with its Industry Division at industry@miic.gov.jm for guidance on how to complete the application process.

Source: Our Today