The Private Sector Organisation of Jamaica (PSOJ) on Friday blasted the manner in which Government implemented the recent tax measures on alcoholic beverages, describing it as a “piecemeal adjustment in response to short term needs”.

The PSOJ in a statement made what it called “general observations” without commenting on the principle of taxing such beverages on the basis of applying tax at specific rates on alcohol content by volume (ABV).

“We have noted with grave concern the manner in which recent changes in the basis of application of SCT to alcoholic beverages has been handled,” said the PSOJ.

“The recently implemented, and sudden, change to the ABV method of application of SCT to alcoholic beverages appears to follow the historical pattern of piecemeal adjustment in response to short term needs, and stands in stark contrast to the Government’s stated commitment to a comprehensive approach to Tax Reform,” read the statement.

This, the PSOJ said, was against the background of an Economic Policy Framework, published by the organisation in January and endorsed by some 65 private sector associations, which blasted the “piecemeal basis” of appying taxes and reccommended tax reforms that clearly “demonstrate the link between budget measures and the Government’s medium and long-term planning objectives.”

The PSOJ said that it also called on the Government to “consult with the private sector and other stakeholders through the various stages of the budget process”, saying that the organisation was therefore surprised that the Government should have proceeded to implement the alcoholic beverage tax measure without consultation with industry participants.

Finance Minister Audley Shaw earlier this month unveiled new taxation measures which he said should have netted an additional $772 million in revenue, and “assist the Government in meeting its revenue targets for the 2010/2011 fiscal year”.

Those taxes included a single specific Special Consumption Tax (SCT) of $960 per litre of pure alcohol (based on alcoholic content) on beers and stouts, wines (including beverages commonly known as tonic wines), cordials, liqueurs, vodka, whiskey, brandy, gin, underproof and overproof rum, except white overproof rum. The measure, which became effective on December 1, was expected to yield $618 million of the $778 million.