Friday, April 16, 2004

Ja: Read my lips...

FINANCE Minister Omar Davies yesterday eschewed new taxes for the current fiscal year, but said that he will borrow up to $153 billion to finance the Government's spending and pledged to maintain the fiscal deficit to the promised four to five per cent of gross domestic product (GDP).

In fact, after last year's tax package of over $14 billion, or nearly four per cent of GDP, Davies yesterday offered taxpayers two small offerings:

--a roll back, from June, of the 15 per cent general consumption tax (GCT) on health insurance premiums, that was imposed last year; and

--the removal of duties and taxes on solar water heaters manufactured in the Caribbean Community (Caricom). Solar water heaters manufactured in third countries will face the common external tariff (CET).
These two concessions are a joke. How many of those catching their arse to survive will actually benefit from a roll back on health insurance premiums and on solar water heater duties? Tax cuts will increase revenues because taxpayers have less incentive to dodge paying taxes when the tax burden is not onerous. How about a 12% flat tax for Jamaica, for all of the Caribbean?


Post a Comment

Links to this post:

Create a Link

<< Home