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Golding gets flak for relief package

Published: Tuesday | December 16, 2008


A day after Prime Minister Bruce Golding announced a rescue plan for the country's economy, which is being battered by turbulent world economic seas, some stakeholders are painting his intervention as incomplete.

Michael Williams, general secretary of the National Democratic Movement (NDM), told The Gleaner yesterday that "there is absolutely not enough in the prime minister's plan for the ordinary man".

Golding on Sunday announced a major economic stimulus package including tax relief for the tourism sector and measures aimed at strengthening the financial positions of companies in the manufacturing sectors.

Golding also announced an increase in the income-tax threshold from $200,304 per year to $220,272, effective January 1. The increase in the threshold means only salaries above $18,356 per month would attract income tax.

With the increase, persons earning above the threshold will gain an additional $450 in education and income-tax savings.

Williams argues that the threshold is too low and is not good enough to help the more vulnerable workers in the face of high inflation.

"We are asking him to take the threshold to $300,000 yearly. It would increase a little more relief for persons who are struggling to get by on their salary," Williams said.

The NDM general secretary also chided Golding for neglecting pensioners in his relief package.

Meanwhile, Vincent Morrison, president of the National Workers' Union (NWU), has welcomed the move by the Government to provide tax relief to the manufacturing and tourism sectors.

However, Morrison said the move would be counterproductive if it were not twinned with an agreement to save jobs.

Under the plans announced by government, the tourism sector is expected to keep an estimated $66.7 million in taxes. Morrison also said the relief to tourism and bauxite was not going to stop layoffs and redundancies but hoped it could at least lead to saving many jobs.

The trade unionist urged private-sector companies not to be in a hurry to lay off employees, especially with the reprieve many got through Golding's plan.

Morrison said he had hoped Golding would have addressed the issue of high interest rates and announced a reduction in PAYE taxes.

 
 


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