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<span style="font-weight: bold">News Source: OTGNR - </span>
<span style="font-weight: bold"> Confirmed : # Jamaican Gov ' t roll...uor ( RJR )...</span>
Two weeks after unveiling a new tax package to plug a hole in the 2010/2011 Budget, the Bruce Golding government has modified plans to raise $700 million from the liquor industry. Finance Minister Audley Shaw announced in Parliament on Tuesday evening that the Government has decided to roll back the Special Consumption Tax (SCT) it had levied on imported hard liquor.At the same time, the tax man will be going after high energy drinks. For tourism's sakeRum manufacturers and players in the tourism sector had complained bitterly following the initial announcement that the tax regime would have hit them hard.Mr. Shaw says the government has reconsidered the move."It was decided to reduce the rate of $960 of pure alcohol to $450 on spirits other than beers and stouts, wines, liquers and cordials imported or taken out of bond by licensed hotels and resort cottages. This reduction in rate is expected to create a revenue shortfall of $160 million for the balance of this fiscal year," Mr. Shaw said. Taxman goes after Red BullMeanwhile, the Finance Minister has announced that the SCT on energy drinks will go into effect on Wednesday to compensate for the revenue shortfall as a result of the roll back of the tax on hard liquor."In order to fill the revenue gap, an ad valorem Special Consumption Tax at the rate of 15% will be imposed on certain high caffeine, high energy non-alcohol beverages such as Full Throttle, Monster, Red Bull, Taboo, Xrated, Boom, Nitro, among others," he said. Opposition not clearMeanwhile, the Opposition says it is not clear about Mr. Shaw's announcement of the imposition of a revenue-neutral rate on pure alcohol in beers and stouts.In announcing the new tax measures earlier this month, Mr. Shaw stated that the Special Consumption Tax on beers and stouts would not affect the price of the products.The Minister announced on Tuesday that the $960 rate on those products has been changed.The new rate to be applied is $1,134.However Spokesman on Finance Dr. Omar Davies said he was in the dark on this measure.He also predicted a spike in beer prices."I have refrained from speaking on the issue because I didn't understand what was going on and it seems to me that I was not alone in not understanding what was going on,""It would seem that much of this could have been straightened out in earlier discussions with all parties, now we are juggling and I am trying to see who has won and who has lost. I can bet Minister, that the beer (company) won't believe that because you have made a revenue neutral adjustment with taxes, beer prices are going to go up," Dr. Davies said.
<span style="font-weight: bold"> Confirmed : # Jamaican Gov ' t roll...uor ( RJR )...</span>
Two weeks after unveiling a new tax package to plug a hole in the 2010/2011 Budget, the Bruce Golding government has modified plans to raise $700 million from the liquor industry. Finance Minister Audley Shaw announced in Parliament on Tuesday evening that the Government has decided to roll back the Special Consumption Tax (SCT) it had levied on imported hard liquor.At the same time, the tax man will be going after high energy drinks. For tourism's sakeRum manufacturers and players in the tourism sector had complained bitterly following the initial announcement that the tax regime would have hit them hard.Mr. Shaw says the government has reconsidered the move."It was decided to reduce the rate of $960 of pure alcohol to $450 on spirits other than beers and stouts, wines, liquers and cordials imported or taken out of bond by licensed hotels and resort cottages. This reduction in rate is expected to create a revenue shortfall of $160 million for the balance of this fiscal year," Mr. Shaw said. Taxman goes after Red BullMeanwhile, the Finance Minister has announced that the SCT on energy drinks will go into effect on Wednesday to compensate for the revenue shortfall as a result of the roll back of the tax on hard liquor."In order to fill the revenue gap, an ad valorem Special Consumption Tax at the rate of 15% will be imposed on certain high caffeine, high energy non-alcohol beverages such as Full Throttle, Monster, Red Bull, Taboo, Xrated, Boom, Nitro, among others," he said. Opposition not clearMeanwhile, the Opposition says it is not clear about Mr. Shaw's announcement of the imposition of a revenue-neutral rate on pure alcohol in beers and stouts.In announcing the new tax measures earlier this month, Mr. Shaw stated that the Special Consumption Tax on beers and stouts would not affect the price of the products.The Minister announced on Tuesday that the $960 rate on those products has been changed.The new rate to be applied is $1,134.However Spokesman on Finance Dr. Omar Davies said he was in the dark on this measure.He also predicted a spike in beer prices."I have refrained from speaking on the issue because I didn't understand what was going on and it seems to me that I was not alone in not understanding what was going on,""It would seem that much of this could have been straightened out in earlier discussions with all parties, now we are juggling and I am trying to see who has won and who has lost. I can bet Minister, that the beer (company) won't believe that because you have made a revenue neutral adjustment with taxes, beer prices are going to go up," Dr. Davies said.