No new tax blueprint
Robinson lays out revenue fix
Opposition spokesman on finance Julian Robinson has proposed an alternative plan to raise billions in government revenue without new taxes, arguing that the fiscal gap could instead be addressed through stronger tax compliance, targeted public sector transfers, and a digital nomad programme aimed at attracting remote workers to Jamaica.
Making his contribution to the Budget Debate in the House of Representatives on Thursday, Robinson outlined what he described as a different approach to financing the 2026/27 budget — one that he said would avoid placing additional financial pressure on Jamaicans still recovering from the effects of Hurricane Melissa that ravaged the south-western and north-western sections of the island on October 28, 2025.
Central to the Opposition’s proposal is the introduction of an electronic invoicing system at Tax Administration Jamaica (TAJ), a technology-driven compliance mechanism designed to capture transaction data automatically at the point of sale and transmit it directly to the tax authority.
Robinson argued that the system would close gaps in the reporting process that currently rely on businesses uploading records after transactions occur.
“The electronic invoicing system changes that dynamic. Rather than waiting for businesses to upload their records after the fact, the transaction data is captured and transmitted immediately to TAJ automatically at the point of sale,” Robinson said.
He told the House that the proposal could significantly increase tax compliance and revenue collection without raising tax rates.
“The Government is no longer reliant on voluntary compliance. The information flows directly and is matched automatically against what has been declared, and the scope for under-collection shrinks considerably because the data is already there,” he added.
Drawing on international examples, Robinson said similar systems have improved tax collections in several countries.
“In Mexico, where this has been implemented, declared revenues increased by 14 per cent in the three years after the electronic invoicing system became mandatory. In Europe, VAT (Value Added Tax), which is the equivalent of our GCT (General Consumption Tax), and corporate income tax collections rose by an estimated 3.7 per cent when the system became compulsory. In Peru, taxable sales reported to the tax authority increased by seven per cent in the first year alone,” Robinson said.
Based on those examples, he estimates that Jamaica could conservatively generate roughly $8.6 billion in additional tax revenues from improved compliance alone.
“This is not new tax, this is money that the Government is entitled to collect,” Robinson declared.
Beyond tax compliance, Robinson proposed introducing a formal digital nomad programme to encourage remote workers from overseas to live and work temporarily in Jamaica while earning income from foreign employers.
He told Parliament that Jamaica already has many of the ingredients needed to attract remote professionals, including connectivity infrastructure, climate, and a strong tourism brand.
“Every year, four million tourists visit Jamaica. We have the brand, we have the climate, we have the culture, and we also have the connectivity infrastructure that those remote workers are looking for. What we do not have as yet is a structured programme that allows them to stay long, to work from here, and spend their money right here in Jamaica,” he declared.
He explained that, under the proposal, the programme would grant remote workers a special permit allowing them to live and work in Jamaica while remaining employed abroad.
“That is a special legal permit allowing remote workers, freelancers, and entrepreneurs to live and work in Jamaica while employed by a company or [who have] clients anywhere in the world,” he explained.
Referring to Barbados, which has started to reap the benefits of this programme since it was introduced after the Covid-19 pandemic, Robinson said the Opposition estimates that attracting just 5,000 digital nomads annually could generate billions in economic activity.
“Barbados estimates that each digital nomad spends, on average, US$55,000 when they are in Barbados… I would not be as optimistic as that, but if I estimate that in Jamaica, an average six-month stay could yield a spend of US$25,000, which is about US$4,000 a month. Jamaica would realise the economic benefit of US$125 mbillion or $19.5 billion,” Robinson told the House.
He also proposed drawing limited additional transfers from certain public bodies that have recorded surpluses.
He noted that the plan includes an additional $1 billion transfer from the Bank of Jamaica’s (BOJ) surplus and another $1 billion from the Factories Corporation of Jamaica (FCJ).
“The Government is projecting for this coming year to withdraw $9 billion from the BOJ. We would take an additional $1 billion to bring the total to $10 billion… I looked at the FCJ with a net surplus of $3.14 billion and profits of $5.15 billion, and we would do a transfer of $1 billion from them. So some of these institutions have demonstrated with their performance, these surpluses which, if put to the central government, would not affect their core operations,” he explained.
While outlining those alternatives, Robinson also reiterated the Opposition’s objections to the Government’s broader package of revenue measures, which, he said, would place the burden disproportionately on low-income households.
“There are hundreds more who were affected by the hurricane who are not back to where they were before. They will now pay more on their grocery bills when they go to the supermarket because the Government has chosen to impose a new tax package of $18 billion,” he said.
Robinson argued that raising taxes during an economic slowdown is the wrong policy response, warning that increasing the tax burden while businesses are earning less and households are spending less only deepens the strain on an already weakened economy.
He said the Opposition’s proposals would still leave a funding gap but argued that it could be managed through modest additional borrowing without significantly altering Jamaica’s fiscal trajectory.
“But [after] a hurricane, when people are struggling and you have a choice, do you impose $18 billion taxes on people who are struggling? Or do you find a way to fund it? We have to balance the books while balancing the lives of the people,” Robinson said.
Opposition Spokesperson on Finance, Julian Robinson makes his contribution to the Budget Debate on Thursday, March 12, 2026. (Photo: Karl McLarty)
