Jamaica's tax authority has delayed the planned increase in the Environmental Protection Levy from 0.5% to 0.85%, which was due to take effect on 1 May 2026, after the enabling legislation needed to enforce the new rate failed to be finalised in time.
Jamaica’s tax administration (TAJ) announced on 18 May 2026 that the implementation of the revised Environmental Protection Levy (EPL) from 0.5% to 0.85%, which was scheduled to take effect on 1 May 2026, has been delayed pending the completion of the necessary legislative processes.
Manufacturers and importers are being advised that while 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 finalised, and therefore, the new rates cannot yet be enforced.
The government indicated that under the proposed changes, the EPL applicable to domestic manufacturers would remain at 75% 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.
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.
TAJ is advising that the existing EPL arrangements will remain in effect until the legislative amendments are completed and an official implementation date is communicated by the government.
