Simpson-Miller

THE PARLIAMENTARY Opposition has called on the Government to reverse the tax package announced in Gordon House yesterday, calling the measures "oppressive, cruel and unjust".

Opposition Leader Portia Simpson Miller urged the Government to have urgent dialogue and withdraw the measures which she said could have devastating effects on the poor and working class.

She said the taxes spared no one "from the cradle to the grave".

Dr Omar Davies, opposition spokesman on finance, expressed shock that the Government rejected a proposal to impose a cess on government paper, while running the risk of incurring the wrath of the majority of the population with its new tax package.

The former finance minister said he had discussions with major players in the financial sector and "not one of them expressed opposition" to the proposal to tax interest on government paper.

"We are so scared, and when we speak about a national effort, why can't they that got the most give something?" he asked.

In terms of the technical feasibility of collecting the taxes, the opposition spokesman said he was amazed that the administration could impose some the taxes listed.

Building up for a failure

"It is not possible for the Government to simultaneously grab that amount from the private citizen and for them at the same time to continue spending which would allow for us to bring this amount," Davies said.

Davies questioned whether "this technically flawed tax package" would undermine the pending IMF agreement.

"We are building ourselves up to a failure and then we wonder why we fail," he said.

Almost like a recurring decimal, Davies again told the Government that this new tax package was not credible. He had expressed this view twice during the Budget Debate earlier this year and at the presentation of the Supplementary Estimates.

Commenting on items removed from the exemption list, Davies questioned how the tax would be collected on fresh fruits and vegetables.

"I would like to see the GCT man go down to Coronation Market and collect the tax," he said.

Davies urged the Government to reconsider the tax on solar water heaters, saying it was ill-advised.

He questioned why the Government was taxing solar water heaters while at the same time raising concerns about the consumption of imported fuel.

The opposition spokesman demanded answers in relation to the Government's assumptions about inflation, the fiscal deficit and the net international reserves.

Davies said the IMF agreement remained a moving target and queried where the country was at this time with the letter of intent.

edmond.campbell@gleanerjm.com