Budget Debate: Taxes not calibrated to protect the poor, says Robinson
KINGSTON, Jamaica — Opposition Spokesman on Finance, Julian Robinson has charged that the Government’s tax package is aimed at filling a revenue gap in the “easiest way possible way”, rather than being calibrated to protect the poor.
“They are not designed around the specific circumstances of a post-hurricane economy. They are taxes, imposed because revenues were needed, and the people at the lower end of the income scale will feel them the most,” said Robinson.
He made the comments on Thursday during his contribution to the Budget Debate.
Speaking to the environmental levy which is projected to raise $3.6 billion for the 2026-27 fiscal year, Robinson noted that the name of the tax suggests that the cashflows from it will be directed toward environmental protection, “toward our coastlines, our watersheds, our forests, the very natural infrastructure that [Hurricane] Melissa reminded us we cannot afford to neglect”.
“But the money goes into the Consolidated Fund. None of it is ring-fenced for environmental purposes.
“So we have a levy collecting money in the name of the environment, but it is not dedicated to the environment,” he highlighted.
“And as with the sugary drinks levy, the importer or manufacturer is not the one who ultimately pays the price. That cost gets passed down, and the consumer absorbs it, with no corresponding benefit to the environment that was used to justify the charge in the first place,” added Robinson.
“Specifically, this tax is simply inflationary and will only drive up the cost of goods in the country,” he said.
The Jamaica Manufacturers and Exporters Association recently warned that the Government’s decision to expand the Environmental Protection Levy to 100 per cent of manufacturers’ sales could weaken the competitiveness of locally-produced goods and give imported products an advantage.
While acknowledging the need to raise funds for national recovery efforts, the JMEA, in a media release, said the measure could have unintended consequences for one of Jamaica’s most productive sectors.
— Lynford Simpson
