Jamaican government yet to decide on bauxite tax removal, opposition raises concerns

Finance Minister of Jamaica Audley Shaw announced that the government has not yet decided to remove tax on bauxite mining. Recently, Jamaica has been facing problems for the non-performance of the bauxite levy arrangement, mostly because of the fluctuations in the global alumina market.

At sitting of parliament’s Standing Finance Committee, Mr. Shaw spoke to Dr. Phillips; Opposition Spokesman on Finance, that the recent profit sharing arrangement with Noranda should not be interpreted as a policy push for removing bauxite tax.

Commenting on profit share agreement, Opposition Spokesman on Mining and Energy, Phillip Paulwell stated: "[the] bauxite Levy is an efficient tax, and conditions in the industry are at their best in 10 years. Oil prices are low and alumina prices are improving".

Paulwell has raised his concerns regarding the government’s decision on removing a tax companies mining bauxite in Jamaica,

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He further stated:  “There is a real possibility that the Government will not collect any revenues from the profit share scheme, as this is dependent on the company reporting a profit. Bauxite is a depleting resource and it is important that the country gets maximum value for this asset.”

According to the Finance Minister, the government has not anticipated revenues from bauxite levy arrangements for this fiscal year. He explained that the Chinese-owned, Jiuquan Iron and Steel, JISCO, is planning to double its alumina production in Jamaica.