Yesterday, we posted a list of monthly reports for discretionary waivers.
diGJamaica researchers did some digging into the recently announced monthly caps to be placed on monthly discretionary waivers. The proposed monthly caps are J$250 Million for Charitable activities, J$70 Million for Government activities and J$10 Million for all other reasons. The monthly totals do not “roll-over”. As such any bar exceeding the line would no longer exist under the new system.
Interestingly, Charitable activities averaged J$228 Million in monthly waivers for the year January to October 2012, making the monthly cap seem quite reasonable, if the amounts rolled over.
Government contracts and government institutions together averaged J$161 Million in monthly waivers for 2012. However, this includes the waiving of duty for 65 JUTC buses, 15 in May and 50 in July. This significantly pushed up the government average. Removal of the buses from the overall average left Government with a monthly average of J$44 Million.
The allocation for all other reasons of J$10 Million monthly, however, seems to be woefully inadequate given the current usage. The Manufacturing, Agricultural and Tourism Sectors would all fight for space under this cap. This does not even include the miscellaneous reasons, which are too numerous to cover, which would would also be in competition for the J$10 Million monthly allocation. The graph below reflects this: