Tax deductible remittances?

Published: Tuesday | March 31, 2009


The Editor, Sir:

The tourism sector recently got a tax break on its GCT rate, an indication that the Government is willing to help that sector because of its importance to foreign-exchange inflows.

A similar gesture could be made to Jamaicans overseas who make remittances to their loved ones for support, but with no legal means of a tax break in the countries in which they reside. These types of remittances lessen the burden on government by helping locals to maintain a decent standard of living, or not slipping below the poverty line. Surely, this counts for something.

I am in the United States, and cannot speak for Jamaicans in other countries, but would have to assume that discretionary remittances are not tax deductible in those countries either.

This relief would require government-to-government agree-ments, with the Jamaican Govern-ment willing to reimburse the US for 50 per cent of amounts claimed for 'remittances', with a proviso that remittances which replaced a previous 'normal donation' under the USA tax code would be excluded, as this would be a substitution payment with no loss in revenues to the USA.

Overseas Jamaicans, I am sure, would rather make a remittance 'home' than to a so-called 'charitable organisation' where they reside. This accommodation need not be made permanent. It could run for an agreed number of years between the countries. The extension of this 'helping hand' by the USA would be a nice gesture of a nation that is 'able' to one that is 'unable' to comply with the global-stimulus objectives being pushed by the US.

I am, etc.,

CARLTON LAING

carltonlaing@hotmail.com

Bridgeport

Connecticut