Tax plan: Take Two - Gov't announces new package tonight - Opposition still to hit the streets
Published: Wednesday | December 23, 2009
Jamaica will hear tonight which of the newly taxable items will be dropped as the Government prepares to backtrack on aspects of the highly controversial tax package announced last week by Finance Minister Audley Shaw, amid deafening public outcry.
But the Government's latest move will not deter the Opposition from hitting the streets in protest.
After announcing the third tax package in eight months, Jamaica House signalled yesterday that Prime Minister Bruce Golding would address the issue in a national broadcast tonight.
All systems go
But the People's National Party (PNP) insisted defiantly that it was all systems go.
"No, it would not stop us," declared Julian Robinson, PNP deputy general secretary, in response to Gleaner queries as to whether the party would proceed with plans to protest at six strategic locations across the island today.
"The opposition leader has made some requests. We have asked that a special session of Parliament be convened, among other things. We have not received a response from the prime minister, so we are prepared to proceed as planned," Robinson said.
Simpson Miller had written to the prime minister requesting a parliamentary debate on the changes to the tax measures announced last Thursday.
Responding to Simpson Miller's letter late yesterday, Golding said Parliament would debate the details of an International Monetary Fund programme in the new year.
He also said the Government would deliberate in Gordon House on the medium-term economic strategy and performance targets, as well as the policies to be pursued to stimulate economic growth and job creation.
Ignored debate call
However, general secretary of the PNP, Peter Bunting, indicated that Golding had ignored the opposition leader's call for a debate in Parliament on the revised tax package before its introduction on January 1.
"The PNP, on behalf of the people of Jamaica, is insisting that Prime Minister Golding respects the parliamentary process and understands that Parliament is neither a rubber stamp nor an audience to observe the governance of the country." Bunting insisted.
Further, Bunting argued: "We have no idea what the scale or scope of these revisions will be, it is very ... very hard to curtail our plans on the basis of speculations."
But Information Minister Daryl Vaz hit back, saying the PNP is without the moral authority to lead a protest.
"This is on the basis that it was their misguided policies which are major contributory factors that necessitated a tax package of $21 billion," he declared
He added: "Furthermore, the prime minister has committed to the country to re-examine the tax package, it would only be irresponsible and premature to plan a demonstration."
JCC urges caution
In the meantime, the Jamaica Chamber of Commerce (JCC) has joined a growing number of groups who point to the fragile state of the Jamaican economy and are urging the Opposition to be careful in how it carries out protest action at this time.
" … We urge an abundance of caution to ensure that nothing is done to further injure an economy which is already reeling from multiple internal and external shocks," the JCC said in a release yesterday.
Highly placed government sources told The Gleaner that the Cabinet had capitulated to public outcry by approving the rolling back of the taxes on some basic food and other items.
However, the source said the tax would remain on others as the Government will still have to find the funds to close the budget gap.
The Office of the Prime Minister said in a statement yesterday that the decision to revise the announced tax package was made following a series of meetings with members of the Cabinet and a technical team from the Ministry of Finance, during which a number of new proposals were discussed.
gary.spaulding@gleanerjm.com








