Gov’t implementing good idea of income tax break in a bad way — NDM
KINGSTON, Jamaica — The National Democratic Movement (NDM) is the latest organisation to add its voice to calls for the Government to reconsider the tax measures outlined in the national budget for the 2017/18 fiscal year.
While the political party commended the Andrew Holness administration for “creative” measures included in the recently announced budget, it opposed the way in which the government is seeking to implement the personal income tax break.
Effective April 1, the personal income tax threshold will be increased from $1 million to $1.5 million, Minister of Finance and the Public Service, Audley Shaw, announced on Thursday.
However, the NDM said it “is of the view that the Government is implementing a good idea in a very bad way, resulting in inequity and extra tax burdens being placed upon the backs of the already overburdened people.”
Shaw had also announced a $13.5 billion tax package that will see Jamaicans paying more for electricity, fuel, motor vehicle licences, group health insurance, alcohol, and tobacco products.
NDM called on the Government to abandon its plan to impose a 16.5 per cent GCT on group health insurance premiums, which it views as “a retrograde step which will likely result in people losing benefits and being forced to attempt to access the already sick and dilapidated public health care system”.
The party suggested that a National/Universal Health Insurance plan be established instead, with a public-private sector input, managed by the private sector and is contributed to by all workers and self-employed people.
“The NDM sees the Government’s roll- out of the tax benefits as being driven mainly by political expediency rather than taking a more long to medium term, sustainable approach.
“It reiterated the NDM’s position that PAYE (Pay As You Earn) should be phased out over a 5 year period — across the board — for the benefit of all Jamaican workers, not just some,” the release added.
According to Shaw, 469,131 Jamaicans are currently on the PAYE tax roll and with the pending $1.5-million threshold, 397,083 will be exempt from paying income tax.
