Budget Woes!

Do you have a budget? How easy was it to stick to the budget you created?

Can you imagine how much more difficult it is to create a budget for an entire country? Of course, it is with great trepidation that we as citizens of the country, await the presentation of the yearly budget.

All across the island everyone waited anxiously to hear what new tax measures if any would be implemented. Although it was hoped that there would be no great upsets, there was a heightened sense of tension as there were a number of areas where the purse strings could have been tightened.

More Taxes

The wait is finally over as in his budget presentation Finance Minister, Dr. Peter Phillips announced a $7 a litre increase in gas prices, as a measure to raise revenue of $6.4 billion. So what does this mean for consumers?

The Finance Minister assured consumers that the increase is negligible and would serve as a protection in the long term. The increase is being touted as a cushion for customers against the prospect of sharp upward movement of oil prices.

It is ironic that this new tax comes in the face of lowered gas prices in the last few weeks.  This new tax becomes effective on March 18, 2015.

Response to Tax

Already there have been calls for the tax to be rolled back or for an extension.

The Jamaica Gasoline Retailers Association (JGRA) President Leonard Green, has stated that many of the retailers will have to find that cash up-front, and would need more time to put their finances in order.

Taxi and bus operators are also worried how the gas tax will affect their profits. It is disheartening to consider that they might pass on these costs to consumers and raise their fares.

There are also tax increases slated for cigarettes which will move from J$8.50 to J$12.00. Consumers were not spared on their electricity bill as effective April 1, 2015, there will be a reintroduction of General Consumption Tax at the standard rate on residential customer usage of electricity above 350kwh.

So we survived hearing the budget and the proposed taxes so what’s next?

Well the best thing I think we can do is continue to have a financial plan to meet the needs of your family.

What’s your take? Let me hear from you!

Teri Ann Renee Paisley
Gleaner online writer

Tags: budget, taxes