Tendai Franklyn-Brown, Staff Reporter

Marcia Bent Ferguson (left), vice-president of the Customs Brokers and Freight Forwarders Association of Jamaica, makes a presentation to Audley Shaw (centre), minister of finance. Looking on is Donovan Wignal, president of the association. Occasion was the association's 42nd AGM at the Hilton Kingston yesterday. - Norman Grindley/Deputy Chief Photographer

FRESH FROM announcing the budget for the fiscal year 2008/2009, Audley Shaw, minister of finance and the public service, said yesterday that funding was in place to facilitate the refurbishing of Customs House to improve the delivery of service to both clients and employees.

Addressing members at the 42nd Customs Brokers and Freight Forwarders Association (CBFFA) annual general meeting, held at the Hilton Kingston hotel, Shaw described how the new Budget would also simplify the tax and duty structure that existed in the customs sector.

"It's an open secret that customs right now is a major area of revenue leakage," Shaw conceded, as he gave a commitment to widening the tax net to ensure that more persons and companies paid up.

Tax reductions welcomed

Shaw, in committing himself to improve customs practices, announced that he had instructed the commissioner of customs to step up efforts to clean up the industry.

Members of the CBFFA welcomed the reduction of transactional costs such as transport and stamp duty, which has decreased by two and a half per cent.

"I listened to some people on the radio yesterday and they said, 'Cho, two and a half per cent anno nutten,' but business people know that two and a half per cent is a good step in the right direction," Shaw said.

Speaking briefly about the tough motor vehicle regime the Golding administration was pursuing, Shaw insisted that the new policy, which takes effect May 1, would reduce to four, the number of duties charged.

"We have sought to simplify the taxation on motor vehicles. Of all those categories, the 16 and a half per cent GCT applies, the 40 per cent custom duty, the two per cent customs user fee, thereafter there is a variation in the special consumption tax (SCT)," he said.

Diesel vehicles will stand to attract a 10 per cent reduction on SCT. However, special considerations are yet to be discussed with regards to hybrid vehicles, as Minister of Energy Clive Mullings is seeking the appropriate fuel distributors to facilitate the conservation of energy programme.

tendai.franklyn-brown@gleanerjm.com