Effective next Friday, all imported goods will attract a 0.5 per cent environmental levy.This 0.5 per cent will be calculated on the cif (cost of goods, insurance and freight) value. However, goods imported by Jamaican residents up to a value of US$500 (J$34,000), the Government, diplomats, and international organisations will be exempted from this charge.

A deductible expense

The implementation of the environmental levy follows the recent announcement by Minister of Finance and Planning, Dr. Omar Davies, during his contribution to the 2007/2008 Budget Debate. Dr. Davies had indicated that "payments made for this levy will be allowed as a deductible expense under the Income Tax Act".

Only manufacturers will be able to claim the levy as an allowable expense under the Income Tax Act for the year of assessment in which it was paid. The return must be filed by March 14.

The Customs Department says all the necessary systems have been adjusted to accommodate this new charge.