The Jamaican Government is in the process of finalizing amendments to the Income Tax Relief (Large Scale Projects and Pioneer Industries) Act which will enable Jamaica to attract investments of US$1 billion or more.
The legislation will provide a suite of tax incentives to potential large-scale investors, according to Minister of Finance and the Public Service, Dr. Nigel Clarke who said he expects to table the revised document in Parliament “very shortly”.
“We’re very close [to completing the amendments]. I was actually hoping to table it in March but definitely within the next three months,” he said during Wednesday’s meeting of the Standing Finance Committee of the House of Representatives at Gordon House where members are deliberating the 2023/24 Estimates of Expenditure.
The Government’s move to amend the legislation comes against the background of similar provisions proposed in the arrangements with Tavistock Jamaica Inc., which is partnering with the Government to undertake the Harmony Cove tourism development project in Trelawny.
The entity is a subsidiary of a global private investment company, the Tavistock Group.
“You’ll recall that a central feature of that project is the Government providing a suite of incentives to Tavistock. However, the policy position of the Government is[that] the idea of providing tax incentives to a single project that is not generally available, is inimical to the kind of Jamaica that we want to build,” Dr. Clarke told committee members.
He underscored the importance of ensuring that “we also [have] a transparent, open process for anyone else investing those sums to be afforded the opportunity of… similar types of incentives.”
“We do not want to go back to the landscape where incentives of this nature were individually negotiated. That’s not healthy for our economy or for our country. What we want to have are independent processes that investors can apply to, that are transparently administered and given,” the Finance Minister added.
Dr. Clarke said consequent on the tabling of the amended legislation, he would see it fit to finalize the suite of incentives with Tavistock for the development at the 2,300-acre Harmony Cove property.
That is being developed into a resort to include several world-class golf courses, a luxury spa, marina facilities, commercial developments, luxury hotels, private residences, and other amenities.
Additionally, it will include a hotel, casino, convention, and entertainment centres, restaurants, and retail assets, and is expected to cost some US$7.5 billion.
The project is a 50/50 venture that will see each partner injecting US$25 million.
Dr. Clarke said Harmonization Limited, the Government entity spearheading the negotiations locally, and Tavistock “continue to work towards reaching a definitive binding agreement for implementation of that project”.
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