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Taxing Consumption in Jamaica

Author

Listed:
  • Kelly D. Edmiston

    (Federal Reserve Bank of Kansas City)

  • Richard M. Bird

    (University of Toronto)

Abstract

In Jamaica, as in most countries, consumption taxes in the form of a value-added tax called the general consumption tax (GCT) and several excise taxes collectively known as the special consumption tax (SCT) are critically important revenue sources, accounting for 37.4 percent of total revenues in fiscal year 2003-2004 (27.7 percent for GCT alone) and an estimated 11.2 percent of GDP (8.3 percent for GCT alone). This article describes in some detail the present structure and administration of the GCT and SCT and then evaluates the performance of these taxes from several angles—their revenue effects, their distributional effects and their relation to the shadow economy, their administrative aspects, and their relation to various international considerations. It concludes by setting out a number of recommendations for reform.

Suggested Citation

  • Kelly D. Edmiston & Richard M. Bird, 2007. "Taxing Consumption in Jamaica," Public Finance Review, , vol. 35(1), pages 26-56, January.
    • Handle: RePEc:sae:pubfin:v:35:y:2007:i:1:p:26-56
    DOI: 10.1177/1091142106292498
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    References listed on IDEAS

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    7. Kelly D. Edmiston & Richard M. Bird, 2004. "Taxing Consumption in Jamaica:The GCT and the SCT," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0432, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    8. Fedeli, Silvia, 1998. "The Effects of the Interaction between Direct and Indirect Tax Evasion: The Cases of VAT and RST," Public Finance = Finances publiques, , vol. 53(3-4), pages 385-418.
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    Cited by:

    1. Wayne Thirsk, 2008. "Tax Policy in Pakistan: An Assessment of Major Taxes and Options for Reform," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0808, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    2. World Bank, 2012. "Jamaica : Poverty and Social Impacts of Fiscal Reforms," World Bank Publications - Reports 12755, The World Bank Group.
    3. Knobel, Alexander & Sinelnikov-Murylev, Sergey & Sokolov, Iliya, 2011. "Quality of VAT administration in OECD countries and Russia," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 21(1), pages 16-34.
    4. Roy Bahl & Sally Wallace, 2007. "Comprehensive Tax Reform in Jamaica," Public Finance Review, , vol. 35(1), pages 4-25, January.
    5. Darío Rossignolo, 2022. "Gender Equity in Taxation in Latin America and the Caribbean," Asociación Argentina de Economía Política: Working Papers 4595, Asociación Argentina de Economía Política.

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    Keywords

    Jamaica; VAT; consumption tax;
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