Business leaders welcome no new taxes
KINGSTON, Jamaica (JIS) — Several business leaders have welcomed the Government’s decision not to implement new revenue measures to fund the 2018/19 Budget, which amounts to $773.6 billion.
Finance and Public Service Minister, Audley Shaw, in opening the Budget Debate on March 8, indicated that Government expenditure for the fiscal year will be primarily financed from the existing tax and non-tax revenue and grants regime.
He said emphasis will be placed on boosting compliance to improve collections particularly at Jamaica Customs Agency (JCA) and Tax Administration Jamaica (TAJ).
Jamaica Chamber of Commerce (JCC) President, Larry Watson, welcomed the decision, citing it as one of the budget highlights.
He told JIS News that the decision reflects a promise kept by the Government, which he describes as “good and solid.”
“I think it is clear that steps are being taken to make Jamaica more efficient in tax collection. The fact that we are seeing the revenues surpassing budgeted amounts is a big positive and hopefully, this is bringing more persons and businesses in the informal economy into the formal economy,” the JCC President said.
He further pointed to studies indicating a potential reduction in tax rates if all income earners begin fulfilling their statutory obligations.
Noting that “overall the budget was good” Watson said it suggested that “we are on a path of recovery” which, he pointed out, commenced under the previous Administration and is continuing under the current Government.
He, however, expressed concern about crime and the potential to derail economic gains and as such, welcomed the increased allocations for national security as “a very positive move.”
The JCC President said the fact that some unions representing public sector workers have not yet signed the four-year wage agreement with the Government is also a matter of concern.
He noted that Jamaica being locked into an International Monetary Fund (IMF) agreement and benefitting from other resulting multilateral financing support required the country to “toe the line” as regards programme and policy implementation.
Watson said, however, that unlike the earlier years of the multilateral support that were characterised by more stringent guidelines, “I believe toeing the line is now more comfortable (and) palatable.”
He urged civil servants to exercise some constraint and consideration.
“If we can get the restraint of the public sector groups, I am pretty confident that the economy will grow and that would allow for a little more generosity in the wage guidelines. Success is journey, not a destination,” Watson said