MOTORISTS, CIGARETTE smokers and licensed firearm holders will face new tax measures aimed at drawing an additional $2.98 billion into Government coffers this year.

The "modest" tax package, announced by Finance and Planning Minister Audley Shaw yesterday afternoon, is projected to increase revenue from tobacco to $2.88 billion, of which the Government plans to allocate $538 million to the National Health Fund.

In terms of motor vehicle licence fees, which were last increased in 2003, a 50 per cent hike in the rate will take effect on May 1, 2008.

Motor vehicle examination fees, driver's licence and other related fees have also increased and will take effect next month.

The importation of damaged motor vehicles, an industry that has flourished in the last few years, will now be a thing of the past.

Mr Shaw said yesterday that the Government has placed a ban on the importation of damaged vehicles and those without a certificate of fitness from country of origin. "It is a system that has been abused," Shaw said, noting that this would significantly reduce the leakage of revenue.

In addition to new measures aimed at increasing tax revenue, Shaw, in opening the debate on the first budget crafted by the Jamaica Labour Party (JLP) in 20 years, announced that the income tax threshold is to be increased effective July 1, to $200,304.

This is about a 3.78 per cent increase in the threshold, which currently stands at approximately $193,000.