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Columns
Find a better system to broaden tax base
By JEAN SEAGA ANDERSON
Thursday, March 07, 2013
It is said that the long suffering PAYE group, according to statistics, is 20 per cent of the population, but contributes the most in identifiable taxes to the Government coffers.
Is this a fact?
If so, I feel that it is time this group put their efforts into lobbying to get the Government to find a better system to broaden the tax base as suggested or demanded by the IMF.
The already established TRN system could be modified in order to collect from persons like independent tradesmen who provide services, and a lot of the sellers of imported goods, agricultural produce and other saleable items that openly operate in every corner of Jamaica but who are presently not in the tax system and induce them to contribute to the country's operating costs like registered above board businesses must do.
Further, it is an open secret that many "self employed" who operate under the tax collection system radar, are persons of means and not the "sufferers" they disguise themselves to be.
It may not be good politics to find a just tax system which could cost every political party in power to lose votes, but it is time that we have a vocal group to stand up and shout regarding this injustice which is killing small businesses and make the Government understand that this injustice must stop.
The time is right. The Government is being forced into the reality of financial responsibility and being forced to find ways to broaden the tax base as the recent announcements by the tax department states that they are going after (implied) professionals who evade some of their tax responsibilities while nothing is said about finding a way to indentify the above listed group. The poor suffering PAYE and small business operations continue to be harassed by frequent costly (to them and the Government) invasions by tax officers seeking to squeeze more out of these long suffering groups which are already caught in the tax net.
Let voices be raised and efforts made by those who are suffering to force the Government to come up with a system that can identify more tax evaders in order to lighten their burden.
It can and should be done and I would like to hear other opinions as to how, and then call on the Government to find the way, if there is the will.
Jean B Seaga Anderson is managing director of Global Travel Service in Mandeville, Manchester.
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