KINGSTON, Jamaica – The Private Sector Organisation of Jamaica (PSOJ), despite welcoming the intent of the Government’s tax package has said that it was unfair and places a burden on 12,000 already compliant PAYE workers.

In a statement today, the PSOJ said that people earning over $6 million annually will be taxed at a higher rate of 30 per cent and described this measure as a “retrograde step, which takes us back to before the 1980s tax reform and was not effective when tried by the last administration”.   

The PSOJ also noted that the tax on fuel, while being an indirect tax, will have an inflationary impact which can further work against the country’s economic reform programme.

The PSOJ is therefore calling on the government to remove the common external tariff (CET) on fuel imports or withdraw the recently announced special consumption tax (SCT) in favour of CET placed on fuel from CET-exempt sources.  The group of business leaders has also said that they stand ready to engage in further consultations on measures towards comprehensive tax reform for Jamaica.