Post Cabinet Press Briefing Report- February 19, 2025

Post Cabinet Press Briefing Report- February 19, 2025

Posted on by OPM Communications

Hon. Fayval Wiliams, Minister of Finance and the Public Service 

Today, I am delighted to be here to officially announce the TAJ’s Special Arrears Settlement Programme that was introduced in late January of this year and is designed to bring relief to taxpayers who have accrued Interest, Penalties and Surcharge (IPS) on outstanding principal amount of taxes.

We believe the Special Arrears Settlement Programme will alleviate the financial burden on taxpayers by providing an opportunity to clear their debts without the additional costs typically associated with late filing and payments. By waiving these extra charges, the programme promotes timely compliance and supports taxpayers in achieving financial stability that will foster continued voluntary compliance.

An examination of the tax outstanding showed that approximately $139.3 Billion Dollars of taxes, accrued Interest, Penalties and Surcharges are owed by non-government taxpayers, 42.5% of those payments are greater than 7 years old.

As a government we were seized by the need to structure this Special Arrears Settlement Programme when we considered the many shocks that individuals and businesses have endured over the last 10 years (2016 to 2024) and to also help the TAJ reduce the arrears. TAJ’s goal is to have no more than 10% of the tax collected in arrears. If you look across the world, this is the standard. Jamaica is at about 23%.

Shocks to Businesses and People

Utilizing the data collated by the PIOJ, during 1999 to 2024, Jamaica had 22 weather events (including Hurricane Beryl. Tropical Storm Rafael and the massive November 2024 rainfall). These events had a significant negative impact on the economy, specifically on businesses and individuals.

What is very interesting to note is that 9 of the weather-related shocks or 41% of them occurred between 2016 to 2024. Layered on top of all of this was the massive global pandemic in 2020 from which we are still feeling the effects in our education sector, businesses that went under never to recover, persons who lost their income during that time and had to draw down on other resources if they had it, businesses that lost a lot of their customers and are just recovering. So, when we talk about the SHOCKS to the economy, we are really talking about shocks to people and businesses.

Of course, this has resulted in a lot of money owed to the TAJ. As I said earlier, approximately $139.3 Billion of taxes, accrued Interest, Penalties and Surcharge are owed by non-government taxpayers, 42.5% of those payments are greater than 7 years old.

SCOPE

It is with that understanding of the severe shocks that individuals and businesses have suffered and the need for TAJ to get closer to global standard in tax collections that I asked the TAJ to craft a programme and they came back with an innovative title the Special Arrears Settlement Programme with the aim to encourage taxpayers with outstanding principal amounts for selected tax types to pay these amounts by March 31, 2025.

Over 30,000 taxpayers are expected to benefit; over 7,500 taxpayers have been contacted so far with $21Billion of principal (excluding charges).

If the principal amount is paid by the deadline, the Government of Jamaica will waive any

unpaid interest, penalty and surcharge (IPS). The programme is restricted to the outstanding principal tax up to the year of assessment 2024 and the period of assessment February 2025

Selected Tax Type on which interest, penalties and surcharges will be waived are:

Education Tax

Corporate Income Tax

Individual Income Tax

Pay As You Earn

Special Consumption Tax

General Consumption Tax

Asset Tax

Partnership Income Tax

 

Objection Cases

Other facts to note are that Cases under Objection will qualify for the waiver provided that the principal taxes have been paid. This could be before or after a decision or agreement on the amount determined on Objection. Note that payment of taxes does not equate to a settlement of Objection.

 

Appeals Cases

Cases under Appeal will also qualify for the waiver provided that the principal taxes have been paid. This could be before or after a decision or agreement on the amount determined on Appeal. Note that payment of taxes does not equate to a settlement of the Appeal.

 

Solution- Taxpayers must be current

Taxpayers, to qualify for the waiver, must have filed all required returns and have no arrears associated with the current periods of assessment and year of assessment at the time that the Interest, Penalties and Surcharges are being removed. This ensures that only compliant taxpayers, who have met their filing obligations and are up to date with their payments, can benefit from the waiver. It promotes accountability and encourages timely compliance with tax regulations.

The initiative will provide taxpayers with significant financial relief, encourages timely compliance, and helps taxpayers manage their obligations more effectively.

All taxpayers who want to benefit under the program must file all required returns. By ensuring that all required returns are filed, the program aims to streamline the process, leading to lower costs for Tax Administration Jamaica (TAJ) in managing filing compliance. Consequently, this efficiency is expected to enhance overall tax administration for the upcoming fiscal year, 2025/2026 and beyond.

In a recent survey that TAJ did, when Jamaicans were asked “What are the implications when TAJ does not collect taxes?” The results suggest a strong understanding of the implications.

It is very encouraging to know that Jamaicans do understand the importance of their tax dollars and of paying their taxes. We do not take that lightly. We want to take this opportunity to encourage compliance and to say to Jamaicans that is why this government works hard to not levy new taxes on you, the hard-working people of Jamaica.

 

Hon. Floyd Green, Minister of Agriculture, Fisheries & Mining

Good morning.

Today, I will provide key updates on three critical matters in the agriculture sector:

  1. The Government’s response to the ongoing dry period affecting our farmers.
  2. The egg supply challenges and the measures we are implementing to stabilize the market.
  3. The progress on Jamaica’s National Hatchery, which is set to transform the aquaculture sector.

 

Drought Response and Mitigation Efforts

The December 2024 rainfall report indicated below-average rainfall in 7 of 13 parishes, with levels ranging between 53% and 85% of their 30-year climatological means. This has severely impacted key agricultural areas, especially in St. Elizabeth, Manchester, and Clarendon, some of our most productive farming regions.

To mitigate the impact of the dry period, the Ministry has activated a $134 million drought response plan, with immediate relief and long-term resilience measures.

 

Immediate Relief Measures:

  • $30 million allocated for water trucking, targeting the hardest-hit parishes.
  • Private contractors engaged to expedite delivery, ensuring that farmers in drought-affected areas receive adequate water supplies.
  • Distribution of 100 small water pumps, donated by Food for the Poor, to support irrigation in production zones.

 

Long-Term Water Resilience Investments:

  • Construction and enhancement of 11 catchment ponds across Trelawny, St. Elizabeth, Clarendon, Manchester and St. Ann.
  • Procurement of 12,500 square meters of pond liners, valued at $10 million, to improve water retention.
  • 171 irrigation kits and 178 water tanks distributed to farmers since September 2024, with additional allocations being processed.

 

These efforts ensure both immediate support and long-term sustainability, helping our farmers manage water efficiently and safeguard food production during periods of reduced rainfall.

 

Egg Supply Challenges and Government Interventions

The egg industry remains under pressure following Hurricane Beryl (July 2024), which led to the loss of 43,000 laying hens and severely impacted domestic egg production.

Egg Production Decline and Market Impact:

  • January to June 2025 projected production: 95.4 million eggs, compared to 123.8 million eggs in 2024—a 26.3% reduction.
  • Current egg prices: $13,000 to $15,000 per case, reflecting the strain on supply.
  • Pullet prices increased by 5% in February 2025, rising from $1,600 to $1,700 per bird, due to higher logistics and feed costs.

 

Government Interventions to Stabilize Supply:

  1. Recommending the importation of liquid eggs for large-scale users in the baking and hospitality industries, to free up whole eggs for local consumers and offset the reduced supply of eggs.
  2. Working with Jamaica Broilers and Caribbean Broilers to secure hatching eggs from alternative markets, including Europe (Belgium & the Netherlands), reducing reliance on North America, which has been affected by the bird flu outbreak.
  3. Collaborating with stakeholders, including the Jamaica Egg Farmers Association (JEFA) and the Jamaica Hotel and Tourist Association (JHTA), to better anticipate demand from bakeries and the tourism sector.

 

Projected Recovery Timeline:

  • Jamaica Broilers estimates that pre-Hurricane Beryl production levels will be restored by July 2025, provided there are no major external disruptions.
  • The Ministry will continue to monitor and adjust interventions to ensure market stability and protect consumers from excessive price fluctuations.

 

Jamaica’s National Tilapia Hatchery Nears Completion

The construction of Jamaica’s first state-of-the-art National Tilapia Hatchery is now 60% complete, marking a transformational step in boosting local aquaculture.

 

Investment and Funding Details:

  • Total investment: $574 million, supported by JSIF and the World Bank.
  • Location: Twickenham Park, St. Catherine.
  • Completion Timeline: Second quarter of the new financial year (FY 2025/26).

 

Key Features & Economic Impact:

  • Annual production capacity: 5 million advanced fry, significantly increasing the supply of high-quality tilapia stock.
  • Integration of solar energy, reducing operational costs and aligning with Jamaica’s climate-smart agricultural initiatives.
  • Bio-secure facility design, improving disease control and breeding efficiency.

 

Long-Term Objectives:

  • Supporting Jamaica’s goal to increase the fisheries sector’s contribution to GDP by 50% by 2027.
  • Reducing dependency on imported tilapia, strengthening food security.
  • Creating employment opportunities for local fish farmers and expanding export potential.

 

Freshwater Prawn Industry

Also, at Twickenham Park, we have expanded capacity and introduced brood stock to strengthen our aquaculture sector. The prawn shrimp hatchery is now complete, and we are launching our first pilot project to engage fish farmers in freshwater prawn production.

As part of this initiative, we are developing a full-scale freshwater prawn hatchery to ensure sustainable local supply. Our goal is to make high-quality, locally farmed peppered shrimp a staple across Jamaica.

 

Ornamental Fishing

We are revitalizing Jamaica’s ornamental fish export industry through our Ornamental Fish Farming Project, which provides training, infrastructure support and market access for local farmers. As part of this effort, we are developing a dedicated Export Clearing-house Facility at the Aquaculture Division in Twickenham Park, now 90% complete and set to open next quarter, to support the growth of ornamental fish farming for export. We are also working closely with Jamaica Ornamental Fish Farmers Association to finalize preparations and ensure farmers are fully equipped to take advantage of this opportunity, with a special focus on youth, women and at-risk communities.

 

Closing Remarks

As we navigate these challenges, the Government continues to:

  • Support farmers through drought mitigation and water resilience initiatives
  • Ensure egg supply stability, by facilitating imports and strengthening local production capacity.
  • Advance the aquaculture sector, with the completion of the National Tilapia Hatchery, prawn shrimp hatchery and ornamental fish farming facility set to enhance food security and economic growth.

We recognize the resilience of our farmers and value the partnerships with stakeholders who continue to support the sector’s recovery and transformation.

The Ministry of Agriculture, Fisheries & Mining will continue working to strengthen food security, support local production and ensure the sustainability of our agricultural sector.

Thank you.