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Mayor McKenzie gets a shocker
Just aware that several businesses operating without trade licencesALICIA DUNKLEY, Observer staff reporter dunkleya@jamaicaobserver.com
Wednesday, May 07, 2008
Town Clerk Errol Greene (first left) and Mayor of Kingston and St Andrew Councillor Desmond McKenzie (centre) peruse a general consumption tax (GCT) certificate produced by the manager of American Jewellery Company Limited on Kings Street in downtown Kingston during Monday's inspection of businesses in the city. (Photo: Lionel Rookwood)
MAYOR of Kingston Desmond McKenzie got a shock on Monday morning.
He found out that a number of business establishments in the downtown Kingston area were operating without a trade licence, which he said was costing the city government billions of dollars in lost revenue.
The Kingston and St Andrew Corporation had advised last week that starting on Monday, May 5, it would be inspecting close to 20,000 places of businesses to ensure compliance with the Licences on Trade and Business Act 1989, starting with the business district in downtown Kingston.
Speaking with the media about three hours into the tour, which caught many business operators off guard, McKenzie, who was accompanied by officials from the Inland Revenue Department, National Solid Waste Management Authority, the Ministry of Labour and Social Security, Kingston Central Police, and the Island Special Constabulary Force, said the violations uncovered were 'frightening'.
"The little we have done so far is telling us and telling the country that there are billions of dollars in revenues that is being withheld from the Government. Of all the 10 to 12 places we have done so far, only one had both the trade licence and the general consumption tax (GCT) certificate.
Others have not been able to show anything," the mayor said, noting that compliance was a meagre 10 per cent.
In addition, he said it was also found that several migrants were in violation of their work permits as they were working outside of the addresses stated on the permits, while garbage was being disposed of in a 'very haphazard manner' by business operators.
"What this is saying to us is that the system needs to be overhauled very seriously. We cannot continue to pressure the normal vendors on the street; it is a disgrace that many of these establishments, well-known establishments, are in violation of the law," said McKenzie, who is in his second term as mayor.
"This operation is going to continue for the rest of the week. When we have completed downtown Kingston we are going to be taking it uptown. The next stop is Cross Roads; Hagley Park Road will be treated in a special way, we're going to continue the drive," insisted McKenzie.
Said he: "One thing I can tell you is that the country is losing revenue and these people are making a lot of money and they are not prepared to pay and it is frightening some of the things we have discovered; these are revenues that belong to the country and our intention is to go out there to get these revenues," McKenzie said.
The mayor, at the same time, said he did not buy into the argument of ignorance about the need for the licence by some merchants, several of whom scurried to the Tax Department to pay up when they got wind the mayor was making the rounds Monday.
"I will concede that probably there are some persons who might not be aware that under the regulations you need a trade licence, but we have been talking about this and if you notice a lot of persons who produced a trade licence, did it this morning (Monday). So that tells you that people are aware.
Just aware that several businesses operating without trade licencesALICIA DUNKLEY, Observer staff reporter dunkleya@jamaicaobserver.com
Wednesday, May 07, 2008
Town Clerk Errol Greene (first left) and Mayor of Kingston and St Andrew Councillor Desmond McKenzie (centre) peruse a general consumption tax (GCT) certificate produced by the manager of American Jewellery Company Limited on Kings Street in downtown Kingston during Monday's inspection of businesses in the city. (Photo: Lionel Rookwood)MAYOR of Kingston Desmond McKenzie got a shock on Monday morning.
He found out that a number of business establishments in the downtown Kingston area were operating without a trade licence, which he said was costing the city government billions of dollars in lost revenue.
The Kingston and St Andrew Corporation had advised last week that starting on Monday, May 5, it would be inspecting close to 20,000 places of businesses to ensure compliance with the Licences on Trade and Business Act 1989, starting with the business district in downtown Kingston.
Speaking with the media about three hours into the tour, which caught many business operators off guard, McKenzie, who was accompanied by officials from the Inland Revenue Department, National Solid Waste Management Authority, the Ministry of Labour and Social Security, Kingston Central Police, and the Island Special Constabulary Force, said the violations uncovered were 'frightening'.
"The little we have done so far is telling us and telling the country that there are billions of dollars in revenues that is being withheld from the Government. Of all the 10 to 12 places we have done so far, only one had both the trade licence and the general consumption tax (GCT) certificate.
Others have not been able to show anything," the mayor said, noting that compliance was a meagre 10 per cent.
In addition, he said it was also found that several migrants were in violation of their work permits as they were working outside of the addresses stated on the permits, while garbage was being disposed of in a 'very haphazard manner' by business operators.
"What this is saying to us is that the system needs to be overhauled very seriously. We cannot continue to pressure the normal vendors on the street; it is a disgrace that many of these establishments, well-known establishments, are in violation of the law," said McKenzie, who is in his second term as mayor.
"This operation is going to continue for the rest of the week. When we have completed downtown Kingston we are going to be taking it uptown. The next stop is Cross Roads; Hagley Park Road will be treated in a special way, we're going to continue the drive," insisted McKenzie.
Said he: "One thing I can tell you is that the country is losing revenue and these people are making a lot of money and they are not prepared to pay and it is frightening some of the things we have discovered; these are revenues that belong to the country and our intention is to go out there to get these revenues," McKenzie said.
The mayor, at the same time, said he did not buy into the argument of ignorance about the need for the licence by some merchants, several of whom scurried to the Tax Department to pay up when they got wind the mayor was making the rounds Monday.
"I will concede that probably there are some persons who might not be aware that under the regulations you need a trade licence, but we have been talking about this and if you notice a lot of persons who produced a trade licence, did it this morning (Monday). So that tells you that people are aware.
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