THE Portmore, St Catherine-based Sunshine City Chamber of Commerce has called for a reduction in some taxes, as Government prepares to deliver its annual budget this week.

It wants:

1. A reduction of personal income tax from 25 per cent to 20 per cent;

2. A reduction of corporate income tax for unregulated entities from 25 per cent to 20 per cent; and

3. Reduction of corporate income tax for regulated entities from 33 1/3 per cent to 30 per cent.

According to chamber President Norman Walker, an impact of a cut in taxes on the working populace, medium and small entities and and large enterprises would be:

1. An increase in the disposable income of employed individuals, which would will lead to an increase in spending, savings and investments resulting in a more efficient and vibrant economy;

2. An increase in demand for goods and services. In order to satisfy the increase in demand, there will be an increase in the production of goods and provision of services leading to greater employment, expansion of business capabilities, tax collection and growth of the economy; and

3. Increase in savings and investments will enhance the ease of access to capital at affordable rate allowing retooling, expansion, educational advancement, research and development resulting in increased productivity.

He added that the immediate implementation of the the proposed tax cuts would, among other things, contribute to strong and stable macroeconomic indicators; reduction in the Primary Surplus from 7 per cent to 6.5 per cent; and an additional $10 billion in tax revenues.