Bankers say tax on financial sector excessive

The Jamaica Bankers Association (JBA) says the tax measures on the financial sector are excessive.

In a statement today, the JBA says the financial sector will bear a large portion of the tax revenue requirement presented in the government 2012-2013 budget.

The banks say that under the proposed revenue measures, the sector will continue to be taxed at the rate of thirty three and a third percent and will not experience a decreased Corporate Income Tax (C.I.T.), as will be enjoyed by other industries.

It notes that in addition, government is to introduce an asset tax rate of 0.2% while also imposing withholding tax on dividends.

The JBA says it is of the view that all these measures combined are excessive.

The JBA said considering the C.I.T. the withholding tax on dividends and the asset tax the financial sector is being asked to pay a significant tax rate.

The bankers say if prolonged, what it calls this disparity threatens to jeopardize the retention of capital within the country.

It also will affect the flow of new capital into Jamaica and the overall competitiveness of the financial sector.