Minister of Finance Audley Shaw rolling in increased taxes.
Corporate Jamaica paid in $11.15 billion in corporate taxes, to June 2017, a huge 32.9 percent more than the $8.39 billion budgeted, as companies continue to benefit from an improving local economy, with low inflation and increasing demand.
The 2017 intake, translates to a 32.6 percent more than the amount collected in 2016 as businesses post increased profit, from moderate growth in the economy. Government collected $8.4 billion from companies to June 2016, 24.6 percent more than the $6.75 billion projected. In contrast, tax collected from dividend payments surprisingly fell to $229.5 million versus $293.7 million budgeted and $369.2 million collected to June 2016. The reduction for the first quarter of the 2018 fiscal year is likely to be purely one of timing. Dividends paid by NCB Financial Group and Scotia Group would translate to payment of over $400 million in dividend tax. Dividend paid by 4 of the largest listed companies during April and May, show that just over $800 million in tax on dividends should have been paid over to June this year.
The data shows that the budget forecast for the current Fiscal year for corporate tax revenue is in line with the intake for 2016.
