KINGSTON, Jamaica Finance Minister Dr Nigel Clarke has removed the General Consumption Tax (GCT) on the importation of live horses into Jamaica.
Dr Clarke made the announcement during his budget presentation in Gordon House earlier today (Tuesday, March 7, 2023).
The following explanation of the GCT removal is published below is taken from Ministry Paper 30/23 – titled Revenue Measures For Financial Year 2023/24.
3 - Elimination of General Consumption Tax on the Importation of Live Horses
- The horse racing industry is facing significant risk from the dwindling numbers of high quality breeding stock. Currently, the barren rate of broodmare stock has been steadily increasing since 2010. In 2010 approximately 17% of the broodmare stock was considered barren or not bred with reports from the Jamaica Racing Commission (JRC) indicating that in 2021 this figure has increased to as much as 29%. Further, approximately 40% of the broodmare stock registered with the JRC was either barren or not bred. The revenue measure aims to encourage the importation of better quality horses namely mare and fillies in order to assist the industry in the numbers of runners.
- In order to facilitate this, the General Consumption Tax on the importation of Live Horses will be eliminated. The House is being asked to note that the last time a revision of the tax treatment was provided on the importation of live horses, was effective 1st April 2015. This saw a reduction of the common external tariff from 40% to 5%.
- The proposal is expected to improve the quality of horses coming into the island. It will also assist in rejuvenating the horse racing industry, not only in terms of breed stock but also mature horses will improve the quality of race events.
- The government collected J$6.3 million from the importation of the live horses in 2022. The effective date for implementation will be before the end of the first quarter.
5 Responses
ja gallop,can you recall many years ago when most imported horses who came to race in famaica were classified in a1 or a2, it seems the present crop of importees are of lower quality and they perform as such,are they bought cheap and then hopefully to mature into good racing quality when and if they improve to compete with our local breds ??
the hue and cry is for more horses .as i suggested caymanas park is over 60 years old ,,iit will cost $jamaican billions for a new race track which would better facilitate the importation of 300 thoroughbreds to enhance better racing in the island..flat lands in st.james close to the tourist mecca and a new race course,,cornwall park is a apt name that comes to mind fhink about it
Thanks four your comments
Government should just remove all taxes from imported horses and collect re taxes when such horse is producing on the track or in the breeding shed am sure they would collect more than 6.3 million yearly from that procedure it encourages people to import good horses with their us or eu currency and over time it would benefit the racing industry give it a try minister Clarke over a 8 year period see how financial rewarding it is for your government nothing is made out of stone if it doesn't work you can revert to the previous arrangements
Indeed, thanks for your comment