Mandeville, Manchester — New president of the Manchester Chamber of Commerce, Garfield Green, has warmed to the Jamaica Labour Party (JLP) Government’s phased implementation of a $1.5-million income tax relief initiative.

However, he says he will wait to see how a related $13-billion tax collection package — including a $7.00 per litre increase in the special consumption tax (SCT) on petrol — pans out before he considers giving a total thumbs up.

“To begin with, relief for our people who pay income tax must be welcomed. But the tax package announced by the finance minister, especially the increased special consumption tax on petrol, as well as the introduction of consumption tax on LNG and heavy fuels, gives reason to pause,” Green said.

“We want to see after all the numbers are crunched what effect all this is going to have on everybody. We are worried that it could have an inflationary effect with increases for everyone down the line, thereby hampering business and even under-cutting the benefits of the income tax relief. We think we should wait and see,” he said.

Last week Finance Minister Audley Shaw announced that the February 25 election campaign promise for income tax relief to workers in the pay-as-you-earn (PAYE) category had been amended. It will now be implemented during the 2016 and 2017 financial years rather than effective April 1.

Under the new arrangement, a first phase of implementation will take place on July 1, with a new income tax threshold being put at $1,000,271 per annum up from the current $592,000. In other words, come July 1, those who earn below the threshold figure (1,000,271) annually will not be subject to income tax deductions.

The second phase will come into being on April 1 next year. At that time the income tax threshold will rise to $1.5 million.

To fill a gap of $12.5 billion in this year’s budget, which will be created by the income tax relief initiative, the Government has announced a tax package to raise $13 billion. This will involve the previously mentioned increased special consumption tax on petrol, which is expected to yield $6.5 billion; another $1.4 billion to come from special consumption tax on imported liquefied natural gas and heavy fuel oil; consumption tax on cigarettes and other tobacco products to yield $574 million; and an increase in departure (travel) tax from US$14.53 to US$35, which it is hoped will bring in $5.3 billion.

Green, who was recently elected unopposed as the new president of the Manchester Chamber of Commerce, said he was looking forward to comprehensive tax reform which will catch up with tax cheats and make a level playing field for all tax payers.

“I would like to see tax reform implemented fully and ways found to ensure that everyone who is eligible pays taxes; and that there is a level playing field in terms of taxes for everyone in business. Right now there are far too many people who are not paying taxes and that is very unfair. We need an equitable system for everyone,” he said.

At the chamber’s annual general meeting on May 4, Green, a mechanical engineer who runs an engineering and facilities maintenance company, pledged to continue the work of his predecessor Loven McCook and others, in providing solid leadership for the business community in Manchester.

High on his agenda will be “partnership” with the police in combating “rising crime”.

An initiative to assist in the repair of police vehicles will be strengthened and continued during his tenure, Green told Jamaica Observer Central.

He told members at the annual general meeting that during the February 25 election campaign the initiative was very helpful to the police.

“We spent quite a bit on repairs and maintenance. In some cases, tyres and batteries were replaced so that vehicles that were parked, we were able to get them up and running. There were stations that were without vehicles just before the elections, and we were able to [assist] those stations during the election period,” he said.

The new president said a long-standing project which several years ago facilitated the provision of surveillance cameras at the centre of Mandeville would continue. “We will be consulting with the Ministry of National Security to have the system upgraded and to have additional cameras,” he said.

Feedback from the police suggested the surveillance cameras had been a great help in fighting crime and catching criminals, Green said.