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"Jamaica's fiscal crisis has deep roots. The last serious attempt to fundamentally arrest Jamaica's economic decline occurred in the late 1980's, when for a brief period Jamaica saw the kind of economic growth, about six per cent of GDP, that can actually transform a country over the medium term. A key part of this short-lived improvement in economic performance was the revenue enhancing effects of a comprehensive tax reform, which occurred on January 1st, 1986.
The chairman of this successful tax reform argues that the reason their comprehensive tax reform proposals were largely accepted by the then Seaga government was that the committee had succeeded in identifying significant additional revenue sources eg withholding tax on interest. This enabled the government to largely go along with the committee's proposal to reduce the rates of both corporate and personal income taxes, which led to a near doubling of revenue. The committee had proposed a rate of 25 per cent for both taxes but the government watered down the proposed reduction to 33 1/3 per cent.
Whilst the general consumption tax was not introduced at that time, the same committee had also prepared a study on the GCT. The introduction of the GCT in the early nineties by another courageous finance minister, Hugh Small, was a fundamental part of Jamaica's fiscal improvement in the first half of the 1990's, sadly reversed by the consequences of our home grown financial crisis."
Why did PJ Patterson and Omar Davis kill that heartbeat ?
Are the next set of assassins waiting to pounce ?
Portia and Omar ?
Someone should be working on a Social Contract between the PNP and Jamaica, a truce if you will.. wheh di resident expert deh ?
The chairman of this successful tax reform argues that the reason their comprehensive tax reform proposals were largely accepted by the then Seaga government was that the committee had succeeded in identifying significant additional revenue sources eg withholding tax on interest. This enabled the government to largely go along with the committee's proposal to reduce the rates of both corporate and personal income taxes, which led to a near doubling of revenue. The committee had proposed a rate of 25 per cent for both taxes but the government watered down the proposed reduction to 33 1/3 per cent.
Whilst the general consumption tax was not introduced at that time, the same committee had also prepared a study on the GCT. The introduction of the GCT in the early nineties by another courageous finance minister, Hugh Small, was a fundamental part of Jamaica's fiscal improvement in the first half of the 1990's, sadly reversed by the consequences of our home grown financial crisis."
Why did PJ Patterson and Omar Davis kill that heartbeat ?
Are the next set of assassins waiting to pounce ?
Portia and Omar ?
Someone should be working on a Social Contract between the PNP and Jamaica, a truce if you will.. wheh di resident expert deh ?
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