In 2002, there was a single individual income tax rate of 25% on all income over $120,432 (up from $50,544 in 1996). Income tax deductions include allowances for social security, retirement fund contributions, and charitable contributions. Personal allowances and deductions for medical expenses, insurance premiums, and mortgage interest are no longer applicable.
There is a single 33.33% tax on all companies except banks, which pay an additional tax of 6%. Special depreciation allowances, income tax incentives, and other benefits are still available. Other direct taxes include a bauxite production levy, transfer taxes, stamp duties, travel tax, duties on estates, and motor vehicle licenses. Tax reductions and exemptions are offered as incentives to hotel and resort developers, and to export manufacturers.
The main indirect tax is Jamaica's General Consumption Tax (GCT) with a standard rate of 15% on most goods and services. A higher rate of 20% applies to telephone calls, and zero-rated or exempt items include foodstuffs, raw materials, capital goods, books, and school uniform. The government is seeking to narrow the scope of goods zero-rated or exempt from the GCT. Other indirect taxes include customs on betting, gambling and lotteries, and excise duties.
The main source of local revenue is a property tax based on the unimproved value of the land.