Tax Administration Jamaica (TAJ) is advising manufacturers, importers and the general public that the revised Environmental Protection Levy (EPL) takes effect today, Thursday, October 1.

This follows the approval of the requisite legislative amendments by both Houses of Parliament, giving legal effect to the imposition of the levy, which should have been in effect in May but was delayed.

With the implementation of the revised measure, the EPL rate will increase from 0.5 per cent to 0.85 per cent on imported and locally manufactured goods. For domestic manufacturers, the EPL will continue to be applicable to 75 per cent of the sales value of goods, while for imported goods, the levy will be applicable to the full Cost, Insurance and Freight (CIF) value.

Get systems and processes ready

TAJ is therefore encouraging all affected manufacturers and importers to ensure that their systems and processes are updated to facilitate application of the revised EPL from the effective date. The revised EPL was initially scheduled to take effect on May 1, 2026, as part of the Government’s revenue measures for the 2026/2027 fiscal year.

However, implementation was delayed to allow for completion of the required legislative process. TAJ had advised stakeholders at the time that the existing EPL arrangements would remain in effect until the necessary legislative amendments were completed and a new implementation date communicated.

Affected businesses are being advised that the current EPL rate of 0.5 per cent will continue to apply for the July to September 2026 quarterly period, for which the return and payment are due on the last working day of October 2026. The revised rate of 0.85 per cent, which takes effect on October 1, will apply to the October to December 2026 quarterly period.

The return and payment for that period, calculated using the new rate, will be due on the last working day of January 2027. TAJ is encouraging affected businesses to take note of the effective date and the applicable reporting periods to ensure that the correct EPL rate is used when calculating their respective liabilities.