Finance Minister Dr Nigel Clarke has announced a 1.5 percentage point cut in General Consumption Tax (GCT).

In opening the Budget Debate in Parliament this afternoon, Finance Minister Dr Nigel Clarke said effective April 1, 2020, GCT will be slashed to a standard 15 per cent down from 16.5 per cent.

The finance minister said, since the inception of the GCT some 30 years ago, this is the first cut in the rate without the imposition of new taxes.

The GCT cut is a part of $18 billion worth of tax cuts announced by the minister this afternoon.

The finance minister also said the government will be reducing assets tax by 50 per cent from 0.25 per cent to 0.125 per cent.

At the same time, he announced a new income tax credit for businesses with up to $500 million in annual sales or revenues.

Clarke said that the potential for the revenue loss for the tax measures is expected to be $1 billion.

In the lead-up to the 2016 general election, the Jamaica Labour Party made a '1.5' promise and when it formed government, increased the income tax threshold from $1 million to $1.5 million.

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