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General Consumption Tax (GCT) Increases Effective January 01, 2010


Permalink 05:14:28 pm, by Melba
Categories: Politics, Commentary

General Consumption Tax (GCT) Increases Effective January 01, 2010

Yesterday December 17, 2009, the Minister of Finance, Mr. Audley Shaw announced in parliament that effective January 01, 2010 the General Consumption Tax (GCT) which is presently 16.5% will be increased to 17.5%. Not only will the GCT be increasing but the list of basic items subject to GCT is also expanding. GCT will also be imposed on the supply of electricity to residential premises, to the supply of sewerage disposal services, to gas tax and to cigarettes. Overall they hope to raise 21.81 billion.


Now, after the Prime Minister, Bruce Goldings, disclosed that there would be increases in taxes as soon as the IMF deal was in place, everyone was ‘kinda’ bracing themselves. However many of us had no idea that they would target all the basic items that the poorest in the society depend on or must use on a daily basis. Examples, salt, sugar, baking flour, eggs, patties, syrup, wheat, fresh fruits, vegetables, ground provisions onions, garlic, meat, cornmeal, sanitary towels and tampons, disposable diapers for the incontinent to name a few. Not to mention the long, long list of medical supplies, educational things, and labour related stuff which are also now included in the GCT net.


So once again the poor people in Jamaica get a royal whipping. At some point there will be diminishing returns from taxation and I’m sure we are very close if not there already. There is going to be a contracting effect on the economy. Crime is going to increase. Poor people can’t bear anymore. Anyway we still have the Christmas to get through. Not sure it will be merry for many but we all ‘haffi’ go be real thrifty from now on.


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Bruk Pocket Jamaican

"Recently, this Jamaican won the 10 million special lottery for a dollar. As soon as the office of the Lottery Corporation was open on the following day, he was there to collect his winnings.

Graciously, he presented his winning ticket to the clerk and in his best English uttered his request "Me cum fi collect the 10 millian dallars, si me ticket ya".

After reviewing and checking the ticket with his manager, the clerk returned and requested on how he would like his payments. The Jamaican replied "Mi wan all a de moni now". "Unfortunately, Sir" the nervous clerk responded, "The procedures are that we can only give you one million now and the balance equally over the next 20 years".

Furious and agitated, the Jamaican asked for the manager, who re-iterated "Sir, my assistant is correct, it is the regulation of the corporation that we initially pay you one million dollars now with the balance paid to you equally over the next 20 years".

Outraged, the Jamaican slammed his hand on the desk and shouted in anger, "Oonu tek me fi idiat, me wan all a de moni now or oonu gi me bak me rass dallar!!"


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