Common causes that stifle Jamaica

Published: Wednesday | November 11, 2009


The Editor, Sir:

Claude Clarke's exposure of the Golding administration's misguided agricultural policy has crystallised my dismay at this direction. The article of Sunday, November 8 points out that the PM "and his economic advisers should realise that there are common causes to this common failure. And that it should be their priority to identify these common causes and correct them".

I would like to share and get feedback on my feeling that Jamaica's problems have now become more entrenched, and that new economic policies will not work unless the following are addressed as a matter of urgency:

Safety and Security

Every country needs people, and people will not and cannot contribute in a country where they cannot go about their daily business in safety. Those who can leave will do so and the country will suffer. Similarly, foreigners will not invest in the country as they cannot send their personnel to live there in safety.

Justice

Jamaica's justice system is too inefficient to facilitate economic development. What I mean by this can best be illustrated by an example: I cannot go into a business venture with someone as if there is a disagreement. I cannot take the other party to court to get justice in a timely and inexpensive manner. So deals cannot be made, and nothing other than the very simplest and smallest of businesses or the very large ventures can get off the ground.

Taxation

Why would anyone go into business and get into the tax net when no one in the tax departments knows what he or she is doing? You get a different answer to any question from every person you ask, and you cannot get anything in writing. The Government has a system whereby they audit businesses long after the submission of their returns for periods in the past, so that when tax is assessed, there is not only the principal but horrendous penalties and interest compounded.

You then have to appeal and seek waivers and the whole thing takes years, so you end up owing huge amounts that cripple your business. And don't forget the mental anguish and stress in dealing with these draconian measures. Even if the businessman is lucky enough not to be audited, he still pays over in taxes more than what he makes for himself.

Government taxation measures continue to destroy the formal economy. I am sure that the facts will show that it is only the informal economy that is growing in Jamaica. The Government thinks this is because people are dishonest, wicked and unpatriotic. The fact is that Jamaicans can't afford to participate in the formal economy as doing so will kill them if the gunman does not get them first.

Someone needs to convince the Government that spending millions on development projects is a waste of money, if the basic systems of a civilised society are not in place.

I am, etc.,

FRUSTRATED

BUSINESSMAN

 
 
 
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