PIOJ Growth-Inducement Strategy - Planning Institute of Jamaica

5.0 Recommendations
Based on the market research and consultations that were undertaken in 2009 and 2010 it
was recommended that any incentive programme to be established must be focused on
the build out of BPO space and the issuing of training grants – two main constraints to
the further development of the industry. It is therefore recommended that:
1. Government offers a tax credit amounting to a flat sum of US$1000 for each new
employee hired to each BPO operator. As per Table 1 below, which outlines the
growth in the industry and Government revenue based on the recommendation,
within three (3) years, the industry would have cumulatively created 4000 new
jobs, thus totalling 13,500 jobs for the economy and in 2015 some 10,200 new
jobs and just under 20,000 jobs in total, all amounting to approximately US$28.0
million in net new GoJ revenue.
2. The revised Urban Renewal (Tax Relief) Act is extended to developers for the
BPO industry.
Table D.1. Preferred Incentives Package Option J$M
Year New Jobs
Total New GoJ
Revenue
Flat Rate Tax Credit Net New GoJ Revenue
2011 0 0.00 0.00 0.00
2012 2000.00 7,549,360.00 2,000,000.00 5,549,360.00
2013 2000.00 7,549,360.00 2,000,000.00 5,549,360.00
2014 2000.00 9,436,700.00 2,500,000.00 6,936,700.00
2015 2000.00 13,966,316.00 3,700,000.00 10,266,316.00
Total 10,2000.00 28,301,736.00
Source: JAMPRO
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