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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
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    References listed on IDEAS

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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 Other Operational Studies 12755, The World Bank.
    3. Knobel, Alexander & Sinelnikov-Murylev, Sergey & Sokolov, Iliya, 2011. "Quality of VAT administration in OECD countries and Russia," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 21(1), pages 16-34.

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    Keywords

    Jamaica; VAT; consumption tax;

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