#BudgetDebate2019: Ordinary people could get $16 billion more in tax breaks - Golding

Opposition Spokesman on Finance Mark Golding says the government could have given an additional $16 billion in tax breaks that would benefit "ordinary consumers" without reducing revenues in real terms.

As an example, Golding says general consumption tax (GCT) could have been reduced from 16.5 per cent to return $16 billion to ordinary Jamaican consumers and still see revenues keep pace with inflation.

Another way to increase the tax giveback, he suggested, would be to reduce the $14 billion projected earnings from the special consumption tax (SCT) that was placed on fuel to help finance the government’s election promise of increasing the income tax threshold to $1.5 million.

"Give the travelling public an ease up from high fuel prices… the taxi man and his passengers, the bike man doing deliveries, the truck man bringing food from the country, the pensioners who have to buy gas out of their fixed income,” said Golding.

He was making his contribution to the 2019 Budget Debate in the House of Representatives today days after Finance Minister Dr Nigel Clarke opening the session announcing a $14 billion stimulus plan.

"Let us not forget that part of the tax on gas was to finance a hedging insurance arrangement to protect Jamaicans from increases in the world market price of oil. That hedging insurance arrangement was abandoned by this government, but you have kept the tax in place that was put there to pay for it,” he told Clarke.

"That nuh fair to the people," Golding said.

Earlier, Golding said the tax policy was not morally or economically fair.

He also triggered laughter in Parliament as he sang:

"Santa Clarke, do you ever come to the ghetto?
Santa Clarke, do you ever wonder why wi suffer so?"

The Opposition spokesman noted, too, that despite the $14-billion tax giveback, the Andrew Holness administration is looking to collect $47 billion or nine per cent more in taxes in the 2019-2020 fiscal year when compared to the original budget for the current fiscal year.

He pointed out that GCT collections are projected to increase 12.6 per cent from $177 billion to $199 billion while income tax collection is projected to go up by 14.5 per cent from $138.2 billion to $158.3 billion.

"We must ask why hasn’t the government shown some regard for the people and the burdens they are bearing in determining how to direct the tax rollback?" he questioned.

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