Jamaica’s tax reform under review

A Parliamentary Committee has been set up to review the Government’s proposals for tax reform, which are slated to take effect on January 1 next year.

Prime Minister Bruce Golding is hoping the nine-member committee can come up with improvements to the current tax system, which he says is still a major deterrent to the kind of investment that the country needs.

“I hope that the Committee can assist us in arriving at a system that is more equitable, and a system that is more conducive to investment and growth, and job creation,” he said.

Golding urged the members to “take the assignment with the greatest seriousness.”

“I imagine the Committee will wish to receive submissions. The debate, in my view, has been proceeding with a fair amount of interest (and) I’m going to urge the Committee to consider what is in the broad national interest, and not necessarily what may be savoured by particular interest groups, no matter how powerful they may be,” he advised.

The Committee will be chaired by Finance Minister Audley Shaw. The other members are Minister of Foreign Affairs and Foreign Trade Dr. Ken Baugh; Minister of Agriculture and Fisheries Robert Montague; Minister of Industry, Investment and Commerce Dr. Christopher Tufton; Minister of Tourism Edmund Bartlett; and MPs Dr. Peter Phillips, Dr. Omar Davies, Fitz Jackson, and Anthony Hylton.

A Green Paper on tax reform was tabled in May. It seeks to address the inefficiencies and complications in the country’s tax system; enhance compliance levels; broaden the tax base, and simplify the overall revenue system.

The last major tax reform took place from 1986 to 1991, when the General Consumption Tax (GCT) was introduced, with various reform measures, some from the 2004 Matalon Tax Policy Review, which was implemented in 2005.

Source: Caribbean360