The Government has procrastinated in enacting the amendment to the law to tax housing allowance wholly, and must give due consideration to taxpayers in not making the adjustment retroactive.

It is unfortunate to make payroll adjustments mid-year but it is ludicrous to make such a change retroactively. This might seem a simple matter for persons not involved in the processing of payroll, but can prove to be a great headache for payroll personnel. It requires:

1. The addition of a new pay source (housing allowance - taxable)

2. Entering the housing allowance for all employees receiving such

3. Setting previous housing allowance given to nil

4. If not enacted, the process has to be reversed and redone.

Furthermore, employers do not have the right to change terms of pay without proper authority.

I would recommend that employers do not make any change to the treatment of housing allowance until the law is amended and they are properly authorised to do so. The Jamaica Employers' Federation and other interests should make strong representation to the Government that the adjustment, if it is still being considered, should not be done retroactively. The Government needs to take the taxpayers' interest into account.

I am, etc.,

ANGELA BISASOR

a.bisasor@gmail.com