Members of the People's National Party Youth Organisation march to Jamaica House to deliver a letter outlining their concerns about the Government's $18-billion tax package, while police personnel look on. - Norman Grindley/Chief Photographer
Prime Minister Bruce Golding has refused a request from the People's National Party Youth Organisation (PNPYO) to discuss alternatives to Government's recently announced $18 billion tax package.
PNPYO President Damion Crawford yesterday led a small group of protesters to Jamaica House, taking with him a letter containing what he said were alternatives to the tax measures outlined by Minister of Finance and the Public Service Audley Shaw last Thursday.
However, in a release from Jamaica House yesterday, Golding said he expected the Opposition People's National Party (PNP) to use the Budget Debate to air its concerns about the Budget and the $18 billion tax package that was announced.
"I expect that the concerns you have raised and the proposals you have put forward will be included in the presentations to be made by participating members of the Opposition, to which the Government will respond appropriately," Golding said in his letter to the PNPYO.
However, Crawford said the response was "unsatisfactory". He said the PNP did not speak for the PNPYO and that the organisation he led would be making its view known through islandwide protests next Monday.
"We are disappointed because some of the taxes have not been reserved until the Budget Debate has ended. We had hoped to meet with the prime minister and discuss what we believe are credible objectives but, yet again, in his own dictatorial style, he has imposed what he believes is right on the people and has refused us audience," Crawford said.
He added: "If he had waited until the Budget Debate was complete before imposing the taxes, then we would have also waited until after the Debate to give our suggestions."
Already, Opposition Leader Portia Simpson Miller has urged Jamaicans to wear black today as a mark of protest against the tax package.
She said Jamaicans should also turn their headlights on and honk their horns in protest against the tax package.
Alternatives proposed by the PNPYO
1) Increase tax on interest at holding on bonds from 25 per cent to 33.33 per cent reflects what is proposed to be charged on dividends to overseas. This will lead to an earning of $9 billion and would impact more of those who can afford it and also those who benefited from the high interest-rate policy.
2) Charge a 15 per cent tax on dividends. This used to be 25 per cent until it was removed to have more people become listed. This objective was never achieved and recently, the zero taxation was extended to the non-listed person. This will earn approximately $2 billion.
3) Collect the outstanding $8 billion in GCT. The collection of even 50 per cent of this GCT, which was paid over to merchants but not transferred to the Government, will yield an additional $4 billion. The Government should endeavour to collect 75 per cent of this outstanding amount from these merchants, which will see the generation of $6 billion.
4) Increase all sin taxes - $0.5 billion.
5) Sign a memorandum of understanding with hotels whereby only those that consume 60 per cent of their total purchases in Jamaican products can receive the half GCT waiver.