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Wednesday, 16 April 2008
Opposition Spokesman on Finance Dr. Omar Davies has cast doubt on the tax amnesty announced by Minister of Finance Audley Shaw.
During his Budget Debate Presentation last Thursday Mr. Shaw said the amnesty is aimed at encouraging tax dodgers to come forward.
But Dr. Davies said the Finance Minister is not likely to achieve much from the six month amnesty.
Dr. Davies said the People's National Party administration made a similar attempt while it was in power but ended up with disappointing results.
"The problem is that persons who have been ducking do a calculation as to whether they should keep ducking because they feel that by coming into the net, it opens up a whole other pile of questions...the prospects are usually overrated," said Dr. Davies.
During his Budget Presentation Tuesday Dr. Davies dismissed Mr. Shaw's first budget as unrealistic.
He said it went too far in revenue projections, but failed to go far enough in terms of government expenditure.
Provisions for public sector wages woefully inadequate
Meanwhile, Dr. Davies also warned the JLP administration that it needed to be more realistic about the provisions in the budget for public sector wages.
He suggested that based on the skyrocketing inflation rate and with negotiations due to start with the police and the nurses, the $14.5 billion contingency figure set aside to settle the Public Sector Memorandum of Understanding is woefully inadequate.
Dr. Davies charged that the public sector wage bill under MOU 3 would be closer to $20 billion.
"The reality is that these preliminary discussions are at a figure that eat up the $14.5 billion already. Police, teachers and nurses are not yet in the discussion and every passing day and I say this seriously to you should have signed them in December as the inflation clock works against you, you are going to have difficulty roping them in," he said.
"$14.5 billion is not credible and you are looking at closer to $20 billion in order to have MOU 3. This is the first time since 2004 that the Ministry is proceeding into a new fiscal year without a clear notion as to what the wage bill will be," he said
Opposition Spokesman on Finance Dr. Omar Davies has cast doubt on the tax amnesty announced by Minister of Finance Audley Shaw.
During his Budget Debate Presentation last Thursday Mr. Shaw said the amnesty is aimed at encouraging tax dodgers to come forward.
But Dr. Davies said the Finance Minister is not likely to achieve much from the six month amnesty.
Dr. Davies said the People's National Party administration made a similar attempt while it was in power but ended up with disappointing results.
"The problem is that persons who have been ducking do a calculation as to whether they should keep ducking because they feel that by coming into the net, it opens up a whole other pile of questions...the prospects are usually overrated," said Dr. Davies.
During his Budget Presentation Tuesday Dr. Davies dismissed Mr. Shaw's first budget as unrealistic.
He said it went too far in revenue projections, but failed to go far enough in terms of government expenditure.
Provisions for public sector wages woefully inadequate
Meanwhile, Dr. Davies also warned the JLP administration that it needed to be more realistic about the provisions in the budget for public sector wages.
He suggested that based on the skyrocketing inflation rate and with negotiations due to start with the police and the nurses, the $14.5 billion contingency figure set aside to settle the Public Sector Memorandum of Understanding is woefully inadequate.
Dr. Davies charged that the public sector wage bill under MOU 3 would be closer to $20 billion.
"The reality is that these preliminary discussions are at a figure that eat up the $14.5 billion already. Police, teachers and nurses are not yet in the discussion and every passing day and I say this seriously to you should have signed them in December as the inflation clock works against you, you are going to have difficulty roping them in," he said.
"$14.5 billion is not credible and you are looking at closer to $20 billion in order to have MOU 3. This is the first time since 2004 that the Ministry is proceeding into a new fiscal year without a clear notion as to what the wage bill will be," he said
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