The Jamaica Customs Agency (JCA) continues to be the second largest financial contributor to national development, with the organisation realising a net revenue of $44.422B, during the first quarter of the 2016/17 Financial Year (April to June), surpassing its target by $2.469B or 5.9 per cent.
When compared to the first quarter of the financial year 2015/16, the JCA has recorded growth in its net revenue collection by 14 per cent or $5.406B, up from $39.016B in 2015.
The major tax items - Import Duty, General Consumption Tax (GCT) and Special Consumption Tax (SCT) all performed positively relative to the targets for the quarter and prior year. At the end of June, the collection in respect of Import Duty was 5.4 per cent above the target while GCT and SCT were 9.35 per cent and 8 per cent respectively above the targeted collection. The growth rates in the revenue from these respective tax items, relative to the previous year, were 29 per cent, 15 per cent and 7 per cent respectively.
The non-tax revenue items also recorded similar positive performances against the target and previous fiscal period. Collectively, the non-tax revenue totalled $3.557B and was $139.6M or 4 per cent above the target of $3.417B. The growth in the non-tax revenue relative to the previous fiscal period was 6 per cent or $186.421M.
The drivers of the quarter’s revenue were automotive diesel oil, motor spirits (unleaded 87 and 90), cigarettes and motor vehicles. Other significant contributors included cellular phones, tiles, bus and car tyres, motor vehicle parts and accessories, communication apparatus, lubricating oils, televisions and refrigerators.
The contributory factors to the Agency’s revenue outturn included growth in the tax base, new tax measures and improved compliance effectuated by the Automated System for Customs Data (ASYCUDA World), Jamaica’s premier electronic trade system.
The principal tax base, the composite of the cost, insurance and freight (CIF) values of imports, grew by 20 per cent or $25.495B, to $150.867B in 2016, up from $125.372B in 2015. The growth in the CIF values may be attributable to, inter alia, greater business and consumer confidence resulting in higher trade volumes; the continued depreciation of the Jamaican Dollar against the currency of our major trading partner, the United States of America and mandatory declaration of freight charges by shippers.
The targeted collection of $48.513B for the second quarter of FY2016/17 has increased by 16 per cent over the first quarter. Whilst there are mitigating circumstances to the achievement of the second quarter’s target, there exist equal opportunities for the augmentation of the tax base and consequently the tax revenues to be collected by the JCA.
The JCA is committed to ensuring that it contributes to the GOJ’s achievement of all fiscal targets of the economic programme being pursued and as such it continues to ensure the strict application of the Customs laws and affiliated legislation while implementing efficient and cost–saving procedures for our valued stakeholders.