Don't tax Christmas bonuses

Letters to the Editor

Don't tax Christmas bonuses

Wednesday, December 02, 2020

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Dear Editor,

I would like to use this medium to request that Minister of Finance and the Public Service Dr Nigel Clarke waive taxes on Christmas bonuses this year.

With the advent of the novel coronavirus pandemic, most companies, especially small, medium and relatively large entities, have been experiencing serious cash flow downturns owing to a decrease in sales, as well as growing receivables almost impossible to collect until there is a meaningful upturn in the country's economy.

It must be borne in mind, Mr Minister, that staff have had to take salary cuts so that they are already in a penurious situation further exacerbated by price increases, particularly affecting food and household purchases.

Most conscientious companies would like to at least give their staff a Christmas bonus, but with the tax axe hovering over their heads, their take-home package may well be “a smalls”.

It is against this background that the Government is being asked to waive some if not all taxes (a cap can be set on the amounts) on Christmas bonuses.

Such a gesture would be highly appreciated by the many householders out there who are facing a most bleak holiday season.

Please, Mr Minister, have a heart!

Lloyd B Smith

Montego Bay, St James

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