Courier companies get temporary tax break to facilitate upgrade of armoured vehicles
Jamaica’s courier companies that use armoured vehicles to transport cash are benefiting from a temporary break in the payment of General Consumption Tax (GCT) and Special Consumption Tax (SCT) on these vehicles.
The House of Representatives on Tuesday approved a motion moved by Finance Minister Fayval Williams to amend the 2nd Schedule of the GCT Act to make the temporary measure applicable.
It took effect on April 1, 2024 and will remain in force until March 31, 2026.
Williams said it was a direct response to the escalating costs faced by courier companies whose vehicles have come under increasing attacks from armed criminals in recent times.
“In an effort to facilitate investments in assets that are purpose-built for the transportation of cash and other values the government has taken the decision to remove the GCT and SCT from armoured vehcles, and the added cost of armouring a vehicle,” Williams explained.
As a result of the amendment, armoued vehicles are now subjected to SCT at a rate of zero per cent. “This will apply to armoured vehicles with a cost, insurance and freight (CIF) value in excess of US$33,000 to be utilised in providing an armoured cash courier service and the added cost of armouring a vehicle – to render it fit for use as an armoured vehicle,” Williams outlined.
With less than 12 months left before the temporary measure expires, the finance minister said “it is therefore being encouraged that entities engaged in the cash courier service utilise this period of GCT and SCT relief to upgrade their fleet and invest in purpose-built vehicles”.
She emphasised that the measure is aimed at bolstering the private security industry amidst the increase in targeted attacks on entities providing armoured cash courier services in addition to ensuring compliance with Jamaica’s international trade obligations.
Williams said the move was “triggered by the numerous gun attacks on the armoured cash courier industry which has negatively impacted the private security industry”.
“These attacks have impacted the companies…by significantly increasing their operational risks and exposing frontline officers to harm,” she added.
The minister cited that the attacks have also had a negative effect on the routine servicing of automated banking machines, hampering the delivery of cash to the general public.