Williams to close Budget Debate on Tuesday
Finance Minister Fayval Williams is scheduled to close the 2026/27 Budget Debate on Tuesday with what many expect to be a doubling down on the measures the Government has announced to finance the $1.4 trillion budget for the new fiscal year, despite push back from the Opposition and some members of civil society.
In opening the Budget Debate on February 12 the finance minister announced new revenue measures including a levy on sugar sweetened beverages expected to raise $10 billion in the new fiscal year.
Williams also announced the introduction of General Consumption Tax (GCT) on certain digital services supplied from abroad, increases in duties on alcohol and cigarettes, an increase in the Environmental Protection Levy, and the return of the standard 15 per cent GCT on the tourism sector for the 2027/28 fiscal year.
The finance minister further announced that the Government would continue its draw down of $11.4 billion annually from the National Housing Trust (NHT).
In total the measures are expected to allow the Government to pull in an additional $45 billion in revenue in the next two fiscal years.
In his contribution to the debate two days later, Opposition spokesman on Finance Julian Robinson slammed Williams and the Dr Andrew Holness-led Administration for its decision to introduce new taxes in the aftermath of Hurricane Melissa which devastated sections of the island last October.
Robinson outlined proposals which he said would prevent Jamaicans from facing new taxes while providing the necessary revenue.
Central to his 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 also 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, and drawing limited additional transfers from certain public bodies that have recorded surpluses.
The Opposition spokesman added that the Government could borrow to make up any shortfall as this would not add significantly to the country’s debt stock.
He also opposed the plan to continue the annual drawdown from the NHT, an issue which was played out when Opposition Leader Mark Golding and Prime Minister Dr Andrew Holness made their contributions to the debate last week, with both sides holding firm to their positions.
On Tuesday afternoon, it will be time for Williams to respond and it is expected that the debate will close without any major change.