Dear Editor,

It is interesting to note that the initial discussion on tax relief came four days after the Antiguan Government announced that starting this year, April 2016, personal income taxes will be abolished in that island.

Perhaps this is where Finance Minister Audley Shaw got his ‘April 1’ inspiration. Nonetheless, what is even more fascinating, is although Mr Shaw envisioned Jamaica being able to do same, he himself cautioned against the implementation of such a policy in short order.

In reference to a news article published by the Jamaica Observer on January 25, 2016, titled ‘JLP would cut income tax’, Mr Shaw posited that implementation of such a policy that of which he describes as “drastic”, could not be considered “at this time”.

Mr Shaw, instead, opted for a gradual reduction in the PAYE rate until full abolition of the tax could be facilitated. He further supported his argument by adding that Jamaica’s “indebtedness and expenditure” would not allow for full removal of PAYE tax and that a gradual reduction of the rate would have to be perused over time and “in line” with debt reduction.

If Mr Shaw himself had made this observation, long before all the analysts and critics, it leads any well thinking person to wonder what changed Mr Shaw’s position? What led to such a drastic detour?

 It was only four days after Mr Shaw made these pronouncements and incidentally, four days after the announcement of the general election, that then Opposition Leader Andrew Holness, in a televised broadcast, listed the removal of PAYE taxes from the salaries of over 100,000 workers as one of his many promises to bring the people of this great nation to prosperity.

As the election drew near, the plan further became the very antithesis of itself. Not only had Mr Shaw abandoned his economic conservation but all talks of “gradual” and “phased” reduction of the tax rate were tossed out. April 1 was now Christmas.

At this juncture, it now seems the Grinch of Mr Shaw’s memory has stolen Christmas, taking off with $9.5 billion in gifts and merriment.

It is rather unfortunate that Mr Shaw’s initial tax reform policy was short lived by his quest for power. Who knows, had he stuck to his initial plan of gradually reducing the tax rate, we would have been on our way to prosperity by now and not still stuck in the departure lounge until May 12.

Rhonda Williams