Effective Friday, June 1, all imported goods began attracting a 0.5 per cent environmental levy. This 0.5 per cent is calculated on the cif (cost of goods, insurance and freight) value. However, goods imported by Jamaican residents (up to a value of US$500), government diplomats and international organisations are exempted from this charge.

The implementation of the environmental levy follows the recent announcement made by Minister of Finance and Planning, Dr. Omar Davies, during his contribution to the 2007/2008Budget Debate. Dr. Davies had indicated that "payments made for this levy will be allowed as a deductible expense under the Income Tax Act". It should be noted that only manufacturers are 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 wishes to indicate that all the necessary systems have been adjusted to accommodate this new charge.