Are the Private sector’s reform the key to Jamaica’s economic recovery?

Recently there has been a lot of discussion about tax reform. The Private sector has suggested several things which they believe if implemented would ease the burden of tax payers in all sections of society.

What would the tax reform proposals mean for consumers? One of the 145 proposals suggests a reduction on GCT (General Consumption tax from 17.5 percent to 12.5 percent) and a removal of GCT on basic food items. Imagine if you want to purchase an item for $500. The current GCT when attached to the item would total $587.5. According to the suggested tax reform that same item would now cost $562.5.

That one caught my attention because the strategy seems to be to reduce taxes but what about those who can not afford to pay the additional costs for basic food items? I do think lowering the amount of tax is a way forward but care must be taken that those most vulnerable in our society are protected.

If adopted what will these measures mean for the average working Jamaican? Certainly less money would be taken from salaries as income tax would only be 15 percent. So that is good news.

Of course, these measures are only in the proposal stage. Therefore it remains to be seen if they will be adopted by the government.

Do you think the Government should adopt the Private sector’s tax reform programmes? Let me hear from you!

- Teri Ann Renee Paisley (Gleaner on-line writer)