Prime Minister Bruce Golding last night urged Jamaicans to stay calm as Minister of Finance and the Public Service Audley Shaw today announces a tax package aimed at closing the gap in the 2009-2010 Budget.
In an address to the nation, Golding acknowledged there has been ongoing speculation about the likelihood of tax increases and confirmed the nation would have to take such a route to raise much-needed revenue.
"In formulating the tax package, we have sought to spread the burden as wide as possible so that it doesn't fall too heavily on any one set of people," the prime minister said. "We have had to devise methods to get those who have been getting away to pay their fair share. But we have had to take into account the low-wage worker, especially the PAYE worker, who has been bearing more than his fair share. And we have had to look out for the very poor, the pensioners and the vulnerable who need to be protected."
But in response to rumours that disruptions are being planned in anticipation of Shaw's presentation today, Golding pleaded with citizens to consider such actions carefully.
"What purpose would that serve? Would it close the Budget gap? No! Would it force us to restructure the Budget by reducing the grants we give to our basic schools, or the provision of medical supplies to our hospitals, or by laying off thousands of public sector workers? Absolutely not!" the prime minister declared.
Golding said increasing taxes was never an easy or pleasant task, but noted the country has been going through tough times as a result of the global financial meltdown.
"Let us not sacrifice the interests of the country on the altar of expediency of whatever kind or motivation. Let's not hand the country over to lawlessness and anarchy," he pleaded.
The prime minister said the security forces were on alert and prepared to respond to any situation in which public order is disturbed.
Let good sense prevail
"But I appeal to all Jamaicans: Let that not become necessary. Let good sense prevail. Let us confront our challenges no matter how difficult they may be," he said.
Days after the implementation of a gas tax was announced by then Finance Minister Dr Omar Davies during his opening presentation in the 1999-2000 Budget Debate, Jamaicans took to the streets in protest. Four civilians were killed while four policemen were injured and a Jamaica Defence Force soldier shot during the two-day riot.
The then People's National Party administration ultimately shelved its plans to introduce the gas tax.
In the run-up to this year's debate, it has become more and more clear that Government plans to place a tax on fuel.
Last night Golding said all the revenue which is collected was still not enough to service the national debt.
"So, before we can pay one civil servant, one teacher, one policeman or one nurse, before we can put one bottle of medicine in our hospitals ..., we have to borrow more money."
He added: "We cannot go on like this! We have to change course! The global crisis has only made matters worse because, with the collapse of the capital markets, it is even harder to get money to borrow."