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New tax measures cruel, unjust, says Omar
BY PHILIP HAMILTON Observer writer
Friday, December 18, 2009
OPPOSITION spokesman on finance Dr Omar Davies has described the Government's new tax package as cruel and unjust.
According to Dr Davies, during the 2008-2009 fiscal year, the Opposition had asked the Government for an immediate revamping of the budget and a new supplementary budget put in place after it became apparent there were problems following the publication of the fiscal data within several months.
This was ignored and delayed and the supplementary budget not put in place until March of this year, Davies said, adding that it was clear to everyone that the data with the projections on which the budget had been built was flawed.
The Opposition, he said, made a proposal in April of a special cess on treasury bills which would have brought in a conservative estimate of $10 billion. "It is interesting that the Government would seek to entertain the possibility of the wrath of 90 per cent of the population by this tax package rather than implement a tax which I have had discussions with major players in the financial system and there is not one of them who has expressed opposition to this."
Davies added that the social issues and social implications as a result of the new tax measures would affect not only persons below the poverty line, but also the middle-class as well.
He also expressed amazement at the manner in which the new measures were implemented, given the technical feasibility required to collect these taxes.
"It is not possible for the Government to simultaneously grab that amount from private citizens and at the same time continue spending," he said. "It is technically not possible, and we demand to see the technical calculations. We fear that as we put forward a technically flawed tax package, it is going to undermine the IMF programme even before we start it because we are building ourselves up for a failure."
Davies also asked how the Government planned to collect GCT on previously exempt items such as fresh fruits and vegetables at Coronation Market and criticised the decision to tax solar water heaters while advocating energy consumption.
He said there was the need for a formal presentation and debate to determine what has guided the Government to put together such an economic programme, a suggestion ably supported by Opposition Leader Portia Simpson Miller.
Describing the new measures as a Christmas present from the Government, Simpson Miller said the poor and working-class will be devastated by the increase in GCT to 17.5 per cent, which will impact on electricity and other utilities.
"Despite the pronouncement of the Government of being caring and compassionate, they found it possible this afternoon to impose one of the most oppressive tax packages ever on the backs of the Jamaican people," said Simpson Miller. "The working-class, the poor, the oppressed, the dispossessed and the disappearing middle-class, everyone and everything, from the cradle to the grave, come January 1, will be taxed," lamented Simpson Miller.
BY PHILIP HAMILTON Observer writer
Friday, December 18, 2009
OPPOSITION spokesman on finance Dr Omar Davies has described the Government's new tax package as cruel and unjust.
According to Dr Davies, during the 2008-2009 fiscal year, the Opposition had asked the Government for an immediate revamping of the budget and a new supplementary budget put in place after it became apparent there were problems following the publication of the fiscal data within several months.
This was ignored and delayed and the supplementary budget not put in place until March of this year, Davies said, adding that it was clear to everyone that the data with the projections on which the budget had been built was flawed.
The Opposition, he said, made a proposal in April of a special cess on treasury bills which would have brought in a conservative estimate of $10 billion. "It is interesting that the Government would seek to entertain the possibility of the wrath of 90 per cent of the population by this tax package rather than implement a tax which I have had discussions with major players in the financial system and there is not one of them who has expressed opposition to this."
Davies added that the social issues and social implications as a result of the new tax measures would affect not only persons below the poverty line, but also the middle-class as well.
He also expressed amazement at the manner in which the new measures were implemented, given the technical feasibility required to collect these taxes.
"It is not possible for the Government to simultaneously grab that amount from private citizens and at the same time continue spending," he said. "It is technically not possible, and we demand to see the technical calculations. We fear that as we put forward a technically flawed tax package, it is going to undermine the IMF programme even before we start it because we are building ourselves up for a failure."
Davies also asked how the Government planned to collect GCT on previously exempt items such as fresh fruits and vegetables at Coronation Market and criticised the decision to tax solar water heaters while advocating energy consumption.
He said there was the need for a formal presentation and debate to determine what has guided the Government to put together such an economic programme, a suggestion ably supported by Opposition Leader Portia Simpson Miller.
Describing the new measures as a Christmas present from the Government, Simpson Miller said the poor and working-class will be devastated by the increase in GCT to 17.5 per cent, which will impact on electricity and other utilities.
"Despite the pronouncement of the Government of being caring and compassionate, they found it possible this afternoon to impose one of the most oppressive tax packages ever on the backs of the Jamaican people," said Simpson Miller. "The working-class, the poor, the oppressed, the dispossessed and the disappearing middle-class, everyone and everything, from the cradle to the grave, come January 1, will be taxed," lamented Simpson Miller.
