TAJ postpones higher environmental protection levy until enabling law is finished

KINGSTON, Jamaica — Tax Administration Jamaica (TAJ) has informed manufacturers and importers that a higher Environmental Protection Levy (EPL) will not take effect on May 1, 2026 as previously signalled.

In a statement released Monday, the agency said the rate was due to move from 0.5 per cent to 0.85 per cent but must wait until the required legal steps are completed. The adjustment was outlined among the Government’s 2026/2027 fiscal measures, yet the bills needed to give it force are still unfinished, so the new percentage cannot be charged.

“The Government indicated that under the proposed changes, the EPL applicable to domestic manufacturers would remain at 75 per cent of sales value, while the levy rate would increase to 0.85 per cent on imported and locally manufactured goods. The adjustment followed consultations with manufacturers and industry representatives who raised concerns regarding competitiveness and parity with imported goods,” TAJ said.

“The Government had also previously announced that the revised EPL measures formed part of broader revenue initiatives intended to support climate resilience and national recovery efforts,” it added.

TAJ said present EPL rules will continue to apply until the legislative changes are done and the Government announces when the revised levy will begin.