Special Consumption Tax

GOJ runs at surplus for fiscal Q1

July 31, 2017 by IC Insider.com

Minister of Finance Audley Shaw carried on from where Phillips left off.

An increase of $7.76 billion in revenues and grants and $1.5 billion fall in expense payments resulted in Government of Jamaica running the country’s finances at a surplus for the 3 months to June, this year.
The surplus of $1.6 billion is $9.3 billion better than the deficit projected at $7.67 billion.
The cost of interest fell $3 billion below forecast to end at $29 billion versus projections of $32 billion. Company profit tax delivered $2.76 billion more revenue than the $8.4 billion forecasted but PAYE brought in $952 million less than the $13.9 billion budgeted. Production and consumption taxes brought in $4.3 billion more than the $41.4 billion planned but imports delivered $478 million less than the $43.96 billion projected, due mainly to a drop of $2.5 billion in Special Consumption tax.
The primary surplus set at $24.4 billion is now at $30.6 billion. Although, the fiscal is running at a surplus ahead of forecast the government borrowed $5.5 billion more than planned and pay back $6 billion less than originally projected.

Filed Under: Economy, Feature Stories Tagged With: Audley Shaw, Jamaica Government fiscal, PAYE, Special Consumption Tax

Carreras pays $7B to government

May 31, 2017 by IC Insider.com

Carreras grew profit by 27% in the fiscal year to March.

According to the last audited financials to March this year, Carreras will contribute $7 billion in taxes to the government of Jamaica coffers, excluding payroll taxes.
For the current fiscal year, the company is expected to contribute in excess of a billion more in taxes as government increased taxes on cigarettes earlier this year and profit grows thus contributing more in profit tax. The cigarette distributors paid 15 percent more in Special Consumption Tax during the fiscal year, than the year before, with $5.9 billion being paid while operating revenues grew 12.8 percent to $13.5 billion.
The financial results to March show profit for the year rising 27 percent to $3.8 billion or $7.84 per share with earnings versus $6.20 in 2016. Carreras incurred $1.2 billion in corporate taxes. In achieving the improved results the company not only increased revenues net of consumption taxes but cut operating cost as well. Administrative cost fell from 1.21 billion to $1.07 billion, as staff cost fell from $211 million down to $163 million and Business support services cost declined from $386 million to $302 million. Distribution cost from $723 million to $622 million as $81 restructuring cost incurred in 2016 was eliminated in 2017. Occupancy cost fell from $56 million to $45 million Security fell from $74 million to $57 million and other expenses declined by $23 million to just $4 million. Staff cost rose from $316 million to $332 million.
Cash funds stood at $2.58 billion compared to $2.6 billion in 2016 and shareholders’ equity at $2.1 billion. IC Insider.com is forecasting profit for the year to March 2018 of $4.4 billion with earnings per share of $9.
Dividends paid during the year to March 2017 amounted to $3.45 billion or 91 percent of profit. The stock traded at $84 on Tuesday on the Jamaica Stock Exchange.

Filed Under: Company News, Company Results Tagged With: Carreras, Jamaica Stock Exchange, Special Consumption Tax

Jamaican Government revenues short $3.5b

August 4, 2014 by IC Insider.com

A $2.5 billion shortfall in the collection of company tax and a $2 billion shortfall in the collection of grants, offset by some areas that over performed, resulted in the overall tax take for the first 3 months of the 2014/15 fiscal year to June, falling short of budget by $3.5 billion revenues.

On the expenditure side, reduced payments of $2.3 billion for non-wages and interest and a billion less in the wage bill, coupled with a $3 billion reduced capital spend, helped to cut expenditure by $6.3 billion, leaving the fiscal deficit better off by $2.8 billion.
Revenues came in at $93 billion for the three months and expenditure at $110 billion, for an overall fiscal deficit of $17 billion.
Areas of revenues that were major out performers are, PAYE with $578 million or 3.6 percent, tax on dividends, $100 million or 24 percent, tax on interest, $726 million or 255 percent, special consumption tax on local goods $737 million or 27 percent, education tax, $231 million an increase of 5 percent.
Local GCT fell sort by 5.5 percent amounting to $792 million, GCT on imports fell short by 5 percent or $723 million.