Make tax compliance certificate mandatory

Published: Saturday | December 19, 2009


The Editor, Sir:

This is indeed a harsh tax bill for the majority of Jamaicans. We understand perfectly well the reasons why we have to increase revenues, but this bill will hurt many of us and will also contribute to an even more shrinking economy, as less spending will to hurt the country even more.

This harsh measure no doubt is as a result of the country's indebtedness, caused in large part by the last administration, and we now have to pay the consequences. Unfortunately, the great majority of the population will not understand this and will see this taxation as 'wicked' making this government unpopular.

Widen the tax net

May I suggest that the Govern-ment withdraw some of the items for increased taxation, especially for basic food items, as this will be especially hard on the poor and the middle class. Government should instead look to widening the tax net to include persons who are without conscience and who are contributing to the country's plight.

In the United States, everyone, save none - whether employed or unemployed, working or retired - has to file income tax return. This way everyone pays taxes and the country prosper.

Bringing in revenues

This might be difficult in Jamaica but there is a way to capture everyone. It should be mandatory for everyone to present a tax compliance certificate (TCC) upon renewal of a driver's licence. Just about everyone who is doing business, whether big or small, can be brought into the system.

There are many persons who operate a business, such as hairdressers, dressmakers, doctors, lawyers, who avoid paying taxes but they all drive a motor vehicle. To obtain a TCC would require them to show what they earn and what they pay. This would bring in revenues in a significant measure.

Also, impose heavy taxes on high-end vehicles, especially the gas guzzlers. But a TCC to licence a motor vehicle should be seriously considered, to augment the government coffers.

I am, etc.,

LUCI EMANUEL-EANES

luci_emanuel@hotmail.com

Kingston

 
 
 
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