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Here is my "I told you so!" Read the last sentence of this article.
BOOK TAX FOR CABINET
Shaw, Holness to take concerns of book industry to executive
Saturday, May 02, 2009
CABINET will Monday discuss the concerns of book publishers, merchants and printers, who have been opposing the 16.5 per cent general consumption tax slapped on books not approved for educational or religious purposes.
The tax on books was part of a revenue package announced by Finance Minister Audley Shaw last week to pull in an additional $18 billion from the pockets of the Jamaican people to plug a gap in Government's $555-billion budget - of which more that 50 per cent is going towards debt repayments.
Yesterday, representatives of the Book Industry Association of Jamaica (BIAJ) met with Shaw and the education minister, Andrew Holness, as they continued their push for a rollback of the tax on books.
Both ministers, a source close to the BIAJ said, agreed to take the association's concerns to Cabinet on Monday, following their meeting yesterday afternoon.
The discussion with the ministers followed an emergency meeting of the association earlier in the morning at the offices of Kingston Bookshop in downtown Kingston.
BIAJ Chairman Franklyn McGibbon said yesterday that the announcement of the GCT on printed items had thrown the industry into a "state of uncertainty", as members were unsure about the books which should attract the 16.5 per cent GCT.
"At this point we are still uncertain of which items to tax. The Commissioner of Inland Revenue has not been able to provide a list (of taxable items)," McGibbon told the Observer before meeting with the ministers.
He said that approximately 10 per cent of books sold were for leisure reading and so the tax revenue to be gained would be minimal. He said also determining these books would involve an administrative nightmare, the cost of which would outweigh the benefits.
Shaw announced the imposition of GCT on printed material in his budget presentation last week before clarifying that printed matter for religious and educational purposes would be exempt from the tax. Newspapers already attract GCT.
The new tax regulations that were scheduled to take affect last Monday. However, McGibbon said he had asked the tax authorities to wait until the issue was clarified before charging the tax.
"We have asked the Commissioner of the Tax Administration Department to give us an undertaking that we will not be held accountable for the tax not collected during the period when it was announced for implementation until the time they give us something we can understand," he said.
The BIAJ members have also questioned why the regulation gives the Commissioner of Inland Revenue the responsibility of certifying the printed matter to be used for religious and educational purposes, instead of the Ministry of Education.
In addition, the BIAJ said yesterday that Government's decision to impose the GCT on books will have serious implications for literacy, education and national development, which it said cannot be outweighed by the incremental tax revenue the measure will yield.
The BIAJ said six year ago, when the previous Government attempted to put a tax on books, it also raised strong objections.
BOOK TAX FOR CABINET
Shaw, Holness to take concerns of book industry to executive
Saturday, May 02, 2009
CABINET will Monday discuss the concerns of book publishers, merchants and printers, who have been opposing the 16.5 per cent general consumption tax slapped on books not approved for educational or religious purposes.
The tax on books was part of a revenue package announced by Finance Minister Audley Shaw last week to pull in an additional $18 billion from the pockets of the Jamaican people to plug a gap in Government's $555-billion budget - of which more that 50 per cent is going towards debt repayments.
Yesterday, representatives of the Book Industry Association of Jamaica (BIAJ) met with Shaw and the education minister, Andrew Holness, as they continued their push for a rollback of the tax on books.
Both ministers, a source close to the BIAJ said, agreed to take the association's concerns to Cabinet on Monday, following their meeting yesterday afternoon.
The discussion with the ministers followed an emergency meeting of the association earlier in the morning at the offices of Kingston Bookshop in downtown Kingston.
BIAJ Chairman Franklyn McGibbon said yesterday that the announcement of the GCT on printed items had thrown the industry into a "state of uncertainty", as members were unsure about the books which should attract the 16.5 per cent GCT.
"At this point we are still uncertain of which items to tax. The Commissioner of Inland Revenue has not been able to provide a list (of taxable items)," McGibbon told the Observer before meeting with the ministers.
He said that approximately 10 per cent of books sold were for leisure reading and so the tax revenue to be gained would be minimal. He said also determining these books would involve an administrative nightmare, the cost of which would outweigh the benefits.
Shaw announced the imposition of GCT on printed material in his budget presentation last week before clarifying that printed matter for religious and educational purposes would be exempt from the tax. Newspapers already attract GCT.
The new tax regulations that were scheduled to take affect last Monday. However, McGibbon said he had asked the tax authorities to wait until the issue was clarified before charging the tax.
"We have asked the Commissioner of the Tax Administration Department to give us an undertaking that we will not be held accountable for the tax not collected during the period when it was announced for implementation until the time they give us something we can understand," he said.
The BIAJ members have also questioned why the regulation gives the Commissioner of Inland Revenue the responsibility of certifying the printed matter to be used for religious and educational purposes, instead of the Ministry of Education.
In addition, the BIAJ said yesterday that Government's decision to impose the GCT on books will have serious implications for literacy, education and national development, which it said cannot be outweighed by the incremental tax revenue the measure will yield.
The BIAJ said six year ago, when the previous Government attempted to put a tax on books, it also raised strong objections.
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