Paulwell THE GOVERNMENT'S announcement of an immediate removal of General Consumption Tax (GCT) on computers has led to confusion among people wanting to take advantage of the concession.
Would-be importers are finding that the old rules still apply and that many customs officials are reporting ignorance of Minister of Industry, Commerce and Technology, Phillip Paulwell's pronouncement on the matter.
Mr. Paulwell told Parliament on April 18 during the 2001/2002 Budget Debate that approval for the removal of GCT payments on all computers imported into Jamaica had been made by Cabinet the previous day. The waiver would also involve computer software.
He said it was an important benefit to the public as it would admit "ordinary persons" to the information highway and would encourage overseas donors, who were concerned about duties. The Minister also called on computer retailers to pass on the 15 per cent savings on GCT to their customers.
But consumers have found that the old regime remains in place. Last Friday, a businesswoman, who handles advertising accounts, showed The Gleaner a receipt indicating that a purchase of computer equipment accrued GCT charges.
A spokesman at the Ministry of Industry, Commerce and Technology said the offices had been flooded with calls from members of the public seeking to take advantage of the waiver and who were seeking clarification on the matter. The spokesman said, however, that before the waiver could be applied an Order from the Ministry of Finance and Planning was required and it must be published in the Government's Gazette.
"We are now awaiting confirmation from the Ministry of Finance and Planning," the officer emphasised yesterday.
The Gleaner has since learnt that that a Gazette addressing the matter has been prepared dated April 25 but it is yet to be fully published by the Government. An officer at the Tax Office told The Gleaner this will be rectified during the course of this week.
At the same time, the GCT office seems unclear how the tax is to be waived given the wording of the Gazette. According to a spokesperson at the Tax Administration Services Department, the proclamations as outlined in the Gazette are ambiguous. "It doesn't make clear just how one can be made exempt from GCT if a purchase of a computer was to be made from a retail store or bought abroad and brought in from customs," the officer said.
Technical Director of the Industry arm of the Ministry of Industry, Commerce and Technology, Beverley Rose, explained that a GCT waiver would apply to Tariff Heading 84.71 which covers keyboards, laser printers, joy sticks scanners and storage units. She added that the Gazette pertaining to waiver of GCT on computers was placed with the Customs Department yesterday.
