Government Outlines Bold Strategies to Drive Jamaica’s Further Economic Growth

“My administration remains committed to building on our successes, creating an environment where businesses can thrive, investments can flourish, and all Jamaicans can benefit from economic progress.”
– Prime Minister Holness
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Prime Minister Andrew Holness announced a series of transformative economic measures designed to transition Jamaica to greater sustainable growth. These strategies, focused on tax reform, investment stimulation, and cost-reduction initiatives, underscore the Government’s commitment to fostering prosperity for all Jamaicans.
Speaking at the 20th Regional Investments & Capital Markets Conference hosted by the Jamaica Stock Exchange on Tuesday (January 21, 2025), the Prime Minister stated: “My administration remains committed to building on our successes, creating an environment where businesses can thrive, investments can flourish, and all Jamaicans can benefit from economic progress. Together, we will achieve peace, productivity, and prosperity.”
The Prime Minister further noted: “Despite facing the worst global health and economic crisis in a century, my administration has delivered nine consecutive budgets with no new taxes, alongside significant tax reductions and givebacks, a remarkable achievement for a developing country.” He also emphasized that these measures aim to simplify processes, enhance efficiency, and drive competitiveness across all sectors of the economy.
Key initiatives announced include:
Tax Reform:
- Legislation to incentivize the repatriation of businesses, including their activities, associated assets, and profits to Jamaica.
- Consolidation of payroll taxes into a single deduction, with implementation targeted for January 2026.
- Potential increase in the threshold for small businesses registering and accounting for General Consumption Tax (GCT), building on the 2019 increase from $3 million to $10 million.
- Revamped Urban Renewal Tax Credit, expanding its framework and geographical scope to attract investment into underserved communities.
Urban Centre Development:
- Establishment of new Urban Centres across all parishes to create hubs of economic activity, with Morant Bay and Boundbrook as the initial projects. The Urban Renewal Tax Credit will be tailored to support these developments.
Capital Investment Incentives:
- Implementation of accelerated capital allowances to encourage businesses to modernize facilities and invest in technology, fostering productivity and competitiveness.
Stock Market Initiatives:
- Exploration of a reduction in the dividend tax rate, currently at 15%.
- Upcoming divestment of the Government’s 20% shareholding in TransJamaican Highway Limited via a public Offer for Sale.
- Later in 2025, the Port Authority of Jamaica will divest a percentage of its BPO asset portfolio through the stock exchange.
Addressing the cost of living, Prime Minister Holness said, “When we improve the ease, speed, and cost of doing business, efficiency gains allow businesses to lower prices for customers. Improving the ease, cost, and speed of doing business is not just about fostering investment but about transforming lives.” Dr. Holness detailed efforts to reduce food costs through agricultural enhancements, subsidies for transportation, and the reduction of GCT on residential electricity from 15% to 7%.
In the meantime, Prime Minister Holness encouraged Jamaicans to take an optimistic outlook as the Government works to achieving peace, productivity, and prosperity for the nation.