Jamaica Warns of Taxing Impact on Manufacturers
The Jamaica Manufacturers and Exporters Association (JMEA) is warning that a proposed 100% expansion of the Environmental Protection Levy on manufacturers’ sales could erode the competitiveness of local goods. If implemented, this may affect landed costs for goods sourced from Jamaican suppliers.
The Environmental Protection Levy (EPL) in Jamaica, first introduced in 2007 on imported goods, aimed to address environmental damage from harmful waste, particularly plastics. It was later extended to domestic manufacturers to level the playing field and comply with World Trade Organization (WTO) standards. The Jamaica Manufacturers and Exporters Association (JMEA), formed in 2018 through a merger, serves as the voice for manufacturers, exporters, and service providers in Jamaica. They advocate for policies that support the growth and sustainability of Jamaican businesses and the economy. Kamesha Blake is the Executive Director of the JMEA. In 2020, the manufacturing sector contributed approximately JMD$60-65 billion to Jamaica's GDP. The sector has faced challenges including declining employment, labor shortages, and skills gaps, but key areas like food, beverages, and tobacco have shown resilience. A five-year strategy aims to increase the sector's GDP contribution to JMD$81 billion by 2025. The current EPL rate is 0.5% on both imports and domestic goods, with the domestic levy charged on 75% of the selling price. The government projects to raise $3.639 billion in revenues as a result of the adjustments to an EPL rate of 0.8 per cent from 0.5 per cent, while expanding the domestic base. The base on which the domestic levy is charged will move to 100 per cent effective May 1, 2026. The JMEA has been instrumental in helping local companies expand and export, advocating for its members and fostering partnerships. They also work to promote Jamaican brands locally and internationally.
