By Vernon Daley, Parliamentary ReporterTHE HOUSE Committee on Taxation Measures is already demonstrating the benefits of consultation.
Last week, the committee had its second meeting, where it heard submissions from a number of interest groups. The groups, which included the Jamaica Confederation of Trade Unions (JCTU), the Jamaica Association of Strata Corporations Ltd., and the Jamaica Veterinary Medical Association, all made valuable submissions about the impact the new tax measures will have on their particular sector.
Many of issues raised by the groups, seem convincing and it is difficult to see how the committee is going to escape the need to modify the taxes that Finance and Planning Minister, Dr. Omar Davies announced in his Budget presentation last month.
The Association of Strata Corporations, for example, made a convincing argument that the imposition of 15 per cent General Consumption Tax (GCT) on maintenance fees will have a devastating impact on these housing schemes. In fact, executive member of the association, Angela Greaves-Hill, warned that the tax measure would turn many strata schemes into ghettos.
TAX POLICY
In a context where the Government has announced a $5 billion initiative to fix up existing urban slums, the last thing it would want is to be creating more ghettos through its tax policy.
The Jamaica Veterinary Medical Association also made a strong case, arguing that the imposition of GCT on veterinary services would make it even more difficult for farmers to secure such services.
With Jamaica constantly facing the threat of Foot and Mouth disease, Classical Swine Fever virus, West Nile virus and Rabies, the association has argued that the interaction between vets and animal owners should be encouraged and not discouraged.
Said the association's written submission: "If any of these viruses enter the country it is expected and reasonable to assume that the farmer would be the ones to notify the veterinarian who will be the first line of defence. If the farmer and pet owner refuse to notify or contact his vet, because of cost, these diseases could spread and create havoc in the country."
I'm sure those words would have left Dr. Davies and his committee with food for thought.
During last week's sitting of the committee, one of the most interesting points came from the JCTU. The umbrella group for most of the island's trade unions advocated the widening of the GCT net to capture most goods and services, leaving only a few exemptions. At the same time, they suggested a reduction in the GCT rate as well as income tax.
The recommendations seemed to have found favour with Dr. Davies, who even at this early stage in the life of the committee, was seeking a preliminary consensus from members, including Opposition Spoke-sman on Finance, Audley Shaw.
While the committee is still considering submissions and has not yet come to any decisions on what it will recommend, it is already clear that the consultations have been useful and are likely to influence members. In that context, it raises the question of whether we could have avoided all this uncertainty about the taxes, if we had held the committee meetings before the Budget debate, as was suggested by the Moses committee.
The Peter Moses-led committee was set up after the so-called gas riots in 1999 to look at ways to make Government more responsive to the people. The House Committee on Taxation measures was one of that committee's recommendations.
DR. DAVIES AND THE MEDIA
Dr. Davies, along with some of his colleagues, appear to have very little regard for the media.
During the sitting of the House Committee on Taxation Measures last week, Dr. Davies suggested that the media are more interested in "cass cass" than substantial issues. This is a contemptuous statement that attempts to paint journalists as buffoons, who have no understanding of complex issues and are only interested in political sideshows.
In fact, it is not unusual to hear Government members in the Parliament, suggesting that members of the Opposition are "performing for the cameras." Implied in this, is that journalists will not be able to separate the heat from the light.
With all their faults, the media still do a good job of keeping the public informed by focusing on real issues. If the media, for example, were to carry all the insufferable prattle that goes on in Gordon House each week, the people of Jamaica would have even a lower opinion of politicians than they now do.
To all those politicians, calling for public broadcasting to show what's going in Parliament, I say, "forget it!" Otherwise, the people will see that it's the politicians and not the media, who are interested in sideshows.
Send comments to: vernon.daley@gleanerjm.com
