Dear Editor,

With the impending increases of up to 250 per cent for its services, the Companies Office of Jamaica has demonstrated a serious lack of foresight, once again proving correct Phillip Paulwell’s assertion that “Jamaica is not a place friendly to investment”.

The impending increases will only serve to push more operators out of the formal economy, further reducing the level of tax compliance and potential revenue for the Companies Office and the Government of Jamaica.

With Jamaica slowly crawling out of its economic malaise, such an increase is ill-timed at best. It is common knowledge that a large portion of Jamaican businesses are unregistered and remain outside the ambit of the Companies Office. The new fee structure will only further alienate business operators especially micro, small and medium enterprises, boosting the informal economy and greatly reducing the potential revenue earnings of central government.

Alternatives must be found. One is to merge the Companies Office with the Jamaican Business Development Centre to reduce overheads and create a one-stop business incorporation, registration and development centre. The other is to implement the increase on an incremental basis. Creative means must be found to reduce the negative impact of the impending increases on businesses and the formal economy. I plead with the Minister of Industry, Investment and Commerce, the Private Sector Organisation of Jamaica and the Jamaica Employers’ Federation to use their considerable clout and influence in finding a way out of this impending disaster because, if allowed, the increase will adversely affect all parties concerned, including the Companies Office.

Arnold Benedict

zherubabbel@gmail.com