Even a layman like me thinks that, given our dire financial straits, the Budget turned out to be less onerous than feared. But, the Minister of Finance and the Public Service, Audley Shaw, dedicated too much of his speech to explaining why we're in a financial pickle. His repetitive preamble waxed politically as he lay the blame for our predicament at the feet of the previous (People's National Party) administration, our lifestyle, corruption, waste, tax-dodgers, the weather, currency devaluation and the global economic crisis.

The Budget depends heavily on taxes (86 per cent) and contains measures that will directly affect the everyday Jamaican. True, the income tax threshold will eventually be doubled and the general consumption tax (GCT) remains at 16.5 per cent, but the base will be broadened, the special consumption tax (SCT) on fuel will be increased to five per cent (which translates to $8.75 per litre - for now) and the GCT on telephone instruments will increase to 20 per cent.

The Budget was not devastating, but I have a few issues. The minister stoutly defended the SCT increase on fuel and recited figures showing that ours will remain one of the cheapest petrol price in this region and the United Kingdom. But, this comparison is invalid since he didn't relate it to our average individual income.

Social safety net

He also repeatedly defended the Government's commitment to the social safety net (which includes free education and no government health-care user fees), but he should have revealed exactly how much they are costing the taxpayers since, though politically profitable, their feasibility is questionable. I maintain that those who can afford to contribute to their health and education should do so.

I was relieved to learn that the increased SCT on fuel would not be applied to the power company, but I wanted to know if the five per cent will be reviewed if the cost of fuel skyrockets again as it did in 2008.

For the average family, the Budget was not overly burdensome but several things should be kept in mind. Adding GCT to salt and other very basic food items seems cruel and collecting GCT from small enterprises on such commodities is going to be extremely challenging. Taxing books and computers (not stipulated for religious or educational institutions) at 16.5 per cent is a backward step for a people struggling to climb out of the pit of ignorance and insularity. Certainly, there must be some compromise on this vexing issue.

Notorious for aggression

The tax net is to be widened but the tax department is notorious for aggression, intimidation, over-assessing and for repeatedly harassing the easy targets (those already registered and attempting to comply). This causes resistance and repels delinquents. It needs to become friendlier and more reasonable to win over those not paying any income tax.

All skilled workers (including those involved in grooming and clothing, mechanics, auto-body workers, landscapers, painters, carpenters, plumbers, masons, electricians, steel workers and tilers) and 'business people' (including shop owners and 'higglers') should be registered, issued certificates of registration and pay an annual registration fee. That way, although some may not earn a steady income, they will all be documented, contribute more than just consumer taxes to the economy and be subject to (simplified) annual income declarations and (possible) auditing.

The Budget depends heavily on projected taxes but it is non-productive and very dicey without improved foreign earnings. There's a conspicuous absence of plans to boost the export industry (including tourism), to earn more foreign exchange and to import less. Minister Shaw said 'taxes' 43 times, 'debts' 11, 'loans' seven, 'borrowing' four, but 'export earnings' zero times.

Garth A. Rattray is a medical doctor with a family practice who may be contacted at garthrattray@gmail.com. Feedback may also be sent to columns@gleanerjm.com