Environmental Protection Levy increase stalled as gov’t yet to finalise legislative changes – TAJ

The planned increase in the Environmental Protection Levy (EPL), which was scheduled to take effect on May 1, has been delayed as the Government has yet to complete the legislative process required to bring the measure into force.

In a statement today, Tax Administration Jamaica (TAJ) said the implementation of the revised EPL rate from 0.5 per cent to 0.85 per cent remains pending until the necessary legislative amendments are finalised.

TAJ advised manufacturers and importers that although the revised EPL rates and related measures were announced as part of the Government’s 2026/2027 fiscal initiatives, the enabling legislation has not yet been completed and, as such, the new rates cannot currently be enforced.

The increase in the tax was announced by Finance Minister Fayval Williams as part of revenue measures.

She indicated that it would earn the government approximately $3. 6 billion in revenue.

Under the proposed changes, the EPL applicable to domestic manufacturers would remain at 75 per cent of sales value, while the levy rate on imported and locally manufactured goods would increase to 0.85 per cent.

The Government had indicated that the adjustment followed consultations with manufacturers and industry representatives, who raised concerns about competitiveness and ensuring parity between locally produced and imported goods.

The revised EPL measures were also announced as part of broader revenue initiatives aimed at supporting climate resilience and national recovery efforts.

TAJ said the existing EPL arrangements will remain in effect until the legislative amendments are completed and an official implementation date is announced by the Government.

The tax authority is encouraging manufacturers and importers seeking additional information to visit the information hub on the Tax Administration Jamaica website or contact its Customer Care Centre.

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