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KINGSTON – Tax Administration Jamaica (TAJ) has announced that it will discontinue its Electronic Funds Transfer (EFT) service via its online platform, effective Friday, July 5, 2024. The move, which impacts individuals and businesses currently using the EFT option for direct bank-to-tax authority payments, will require taxpayers to explore alternative payment methods.
TAJ’s decision to halt the EFT service comes as part of a broader shift in its payment system. As of July 5, taxpayers will no longer be able to use the EFT option, which allowed them to transfer funds directly from their bank accounts into TAJ’s account. The move is likely designed to streamline payment processes and encourage users to transition to other available methods, including credit card payments and direct bank transfers.
While no specific reasons for discontinuation have been provided, the change could be part of TAJ’s ongoing efforts to modernize its tax payment system and ensure a smoother, more reliable transaction process for all taxpayers.
Economic & Compliance Impact on Taxpayers and Businesses
For businesses and individuals who relied on the EFT option for direct bank transfers, this change may require them to adapt to new payment methods. Although TAJ is offering alternative payment channels like Scotiabank’s online and mobile app, direct transfers, and credit card payments, the shift may introduce some initial friction as users transition to the new systems.
For local businesses making routine tax payments such as income tax, payroll deductions, and stamp duties, the discontinuation could potentially cause a temporary disruption until they familiarize themselves with the alternative methods. However, these payment options are expected to maintain TAJ’s revenue stream and minimize compliance disruption in the long term.
Insights from Tax Professionals and Industry Experts
Tax professionals in Jamaica have voiced concerns about the inconvenience the change could create for smaller businesses and individuals who have become accustomed to using the EFT service. “The EFT service was widely used by many taxpayers due to its convenience. This change may require businesses to adjust quickly to alternative methods, and it could result in some confusion at the outset,” said Mark Wilson, a tax advisor in Kingston.
However, the banking sector sees this as an opportunity to streamline the tax payment process through integration with banking platforms, which could ultimately benefit those already familiar with online banking.
TAJ is expected to roll out clearer instructions and guidance for taxpayers regarding the alternative payment options available. The customer care center is already preparing to assist individuals who need help navigating the change. It’s likely that over the coming weeks, TAJ will provide detailed communications to ensure that taxpayers transition smoothly to the new payment options.
As of now, businesses and taxpayers are advised to familiarize themselves with the new payment methods, particularly direct transfers from local banks and using credit cards for payments.
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