Gov’t imposes Airbnb tax

The Government has passed legislation to impose GCT on short-term rentals, including Airbnb properties.

The measure was passed early Wednesday morning during a lengthy sitting of the House of Representatives.

Opposition Spokesperson on Tourism and Linkages, Andrea Purkiss, has condemned the imposition of the new tax, which takes effect April 1, 2027. Opposition Spokesman on finance, Julian Robinson, noted that short-term rentals, including Airbnb properties, was not previously captured under specified tourism activities. He asked the minister if they will now be required to pay GCT at a rate of 15 per cent to which Finance Minister Fayval Williams responded yes.

In addition to the new tax on short-term rental, the House of Representatives gave "full legislative and administrative effect to the revenue measures previously announced" in the budget. These measures include a tax on sugary drinks and an increase in the special consumption tax on alcoholic beverages and cigarette.

Williams said the tax measures "represent a series of necessary adjustments within the tax system designed to strengthen revenue mobilisation and ensure that the fiscal framework remains responsive to current economic conditions".

However, Purkiss, in a media release yesterday, blasted the Government for the imposition of the Airbnb tax.

"The Government's decision to rush this through in the dead of night shows complete disregard for the thousands of ordinary Jamaicans who depend on short-term rentals to survive. There was no warning, no consultation, just stealth," Purkiss said.

She noted that the short-term rental market has exploded, growing from 59,500 guests in 2017 to over 800,000 in 2024, generating more than $32 billion for property owners. The opposition spokesman further stated that many Jamaicans locally and abroad have invested in properties to generate income, many rent out rooms, or additional units on their property to help pay bills and cover costs.

"This new burden threatens their livelihoods," Purkiss said.