Book industry joins criticism of tax package

Published: Wednesday | December 23, 2009



Mcgibbon

Less than 24 hours before Prime Minister Bruce Golding announces changes to the Government's latest tax package, the Book Industry Association of Jamaica (BIAJ) has added its voice to those chiding the administration over the initial measures.

According to the BIAJ, it is concerned about the introduction of General Consumption Tax (GCT) on magazines, journals and other periodicals.

The BIAJ noted that it had voiced similar concerns when a tax on these publications was first considered by the finance ministry in April.

Reintroduced in package

At that time, Finance Minister Audley Shaw had backed down but the GCT was reintroduced last week when Shaw announced a $21.8-billion tax package.

"We wish to indicate the vulnerability of this sector of the book industry as we are already losing customers each year to online reading and downloads to personal computers," said Franklin McGibbon, president of the BIAJ.

"It is without a doubt that the introduction of GCT on magazines, journals and other periodicals will crush the viability of this sector - especially local magazine publishers - and defeat the purpose of the tax, which is to collect additional revenue," added McGibbon.

He argued that the reading habit of the nation is already extremely poor and the BIAJ has spent substantial resources over the years in attempting to improve greater reading habits and functional literacy.

"This tax will only serve to destroy any progress attained so far," McGibbon said.

Under the tax package announced by Shaw, magazines, journals and periodicals would begin to attract 17.5 per cent GCT come New Year's Day.

However, children's picture and painting books, brochures, pamphlets and leaflets for religious purposes would remain on the exemption list.

It is not yet known if the new tax will remain after Golding announces the changes this evening.


Demonstrators against the Government's tax package have been utilising children to transmit the message that the $21.8-billion package is 'wicked and heartless'. This young 'protester' was part of the PNP Youth Organisation's march to Jamaica House on Monday. - Norman Grindley/Chief Photographer

 
 
 
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