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By Luke Douglas Observer writer editorial@jamaicaobserver.com
Friday, October 16, 2009
The umbrella body of most of Jamaica's trade unions is calling on government to introduce a fair and equitable tax system before it enters into a new memorandum of understanding (MOU3).
Goodleigh. we are agreeing to nothing unless we get tax reform
The Jamaica Confederation of Trade Unions (JCTU) say it will not sign any new agreement with government unless more income tax is collected from self-employed professionals, companies and individuals who are now
not paying.
"The prime minister finally told the truth the other day, that apart from PAYE (Pay As Your Earn) people, only 5,000 other Jamaicans are paying income tax," said JCTU president Lloyd Goodleigh at a meeting of the confederation on Wednesday. "We are agreeing to nothing unless we get tax reform."
Goodleigh did not appear satisfied that the number of persons who actually pay PAYE - 350,000 individuals - contrasted so starkly against the total employed work- force, now estimated at 1.12 million persons.
What's more, only 15 per cent of companies pay corporate tax and only half of landowners pay property tax, he added.
"It's a lack of political will (why the taxes are not being collected), because it is not a lot of ordinary Jamaicans who are not paying their taxes," an animated Goodleigh stated at the meeting held at the Joint Trade Unions Research and Development Centre in St Andrew.
His comments followed the shocking revelation by Prime Minister Bruce Golding to a group of corporate executives about the lack of income tax compliance, at a meeting hosted by Jamaica Observer chairman Gordon 'Butch' Stewart at the newspaper's offices last month.
Goodleigh said the reason why government liked to promise "free things" such as education and health care to Jamaica was because the tax burden was not being borne by most persons. "Most Jamaicans get weh Scott free," he noted.
People-centred policies such as unemployment insurance and universal access to pensions should also be part of MOU3, insisted Goodleigh.
"Don't tell me we are a third world country so we cannot afford it. Barbados has unemployment insurance since independence," he said.
Meanwhile, JCTU general secretary Wayne Jones assured that government's unilateral imposition of a freeze on its seven per cent wage increase had not been forgotten.
"It's not simply about the seven per cent. It has to do with the principle that when two parties sign an agreement one party does not have the authority to vary that agreement. Once we relent on that, then we don't know where we will end up. Chaos will be the order of the day," said Jones, who is also president of the Jamaica Civil Service Association. He also warned that the unions had the option to report the government to the International Labour Organsiation, which has considerable clout globally.
"Nobody wants to become a pariah state," he added.
http://www.jamaicaobserver.com/magaz...SAY_UNIONS.asp#
Friday, October 16, 2009
The umbrella body of most of Jamaica's trade unions is calling on government to introduce a fair and equitable tax system before it enters into a new memorandum of understanding (MOU3).
Goodleigh. we are agreeing to nothing unless we get tax reform The Jamaica Confederation of Trade Unions (JCTU) say it will not sign any new agreement with government unless more income tax is collected from self-employed professionals, companies and individuals who are now
not paying.
"The prime minister finally told the truth the other day, that apart from PAYE (Pay As Your Earn) people, only 5,000 other Jamaicans are paying income tax," said JCTU president Lloyd Goodleigh at a meeting of the confederation on Wednesday. "We are agreeing to nothing unless we get tax reform."
Goodleigh did not appear satisfied that the number of persons who actually pay PAYE - 350,000 individuals - contrasted so starkly against the total employed work- force, now estimated at 1.12 million persons.
What's more, only 15 per cent of companies pay corporate tax and only half of landowners pay property tax, he added.
"It's a lack of political will (why the taxes are not being collected), because it is not a lot of ordinary Jamaicans who are not paying their taxes," an animated Goodleigh stated at the meeting held at the Joint Trade Unions Research and Development Centre in St Andrew.
His comments followed the shocking revelation by Prime Minister Bruce Golding to a group of corporate executives about the lack of income tax compliance, at a meeting hosted by Jamaica Observer chairman Gordon 'Butch' Stewart at the newspaper's offices last month.
Goodleigh said the reason why government liked to promise "free things" such as education and health care to Jamaica was because the tax burden was not being borne by most persons. "Most Jamaicans get weh Scott free," he noted.
People-centred policies such as unemployment insurance and universal access to pensions should also be part of MOU3, insisted Goodleigh.
"Don't tell me we are a third world country so we cannot afford it. Barbados has unemployment insurance since independence," he said.
Meanwhile, JCTU general secretary Wayne Jones assured that government's unilateral imposition of a freeze on its seven per cent wage increase had not been forgotten.
"It's not simply about the seven per cent. It has to do with the principle that when two parties sign an agreement one party does not have the authority to vary that agreement. Once we relent on that, then we don't know where we will end up. Chaos will be the order of the day," said Jones, who is also president of the Jamaica Civil Service Association. He also warned that the unions had the option to report the government to the International Labour Organsiation, which has considerable clout globally.
"Nobody wants to become a pariah state," he added.
http://www.jamaicaobserver.com/magaz...SAY_UNIONS.asp#