Opposition wants greater scrutiny of imported raw foodstuff amid GCT removal
Published:Thursday | March 14, 2024 | 5:56 PM
Opposition Spokesperson on Finance Julian Robinson is urging the Government to ensure that mechanisms are in place for greater scrutiny of imported raw foodstuff following its decision to remove general consumption tax (GCT) from those goods.
Making his contribution to the 2024/25 Budget Debate in the House of Representatives on Tuesday, Robinson said the opposition is concerned about the impact the move will have on local farmers.
“We exist in a world where the playing field is not level and where richer developed countries provide subsidies to their farmers. Great vigilance is required to ensure that cheap subsidised produce does not get dumped into the Jamaican market,” said Robinson.
He said that the Government must examine carefully the potential negative fallout from this measure and determine what assistance is needed to ensure local farmers can remain competitive.
“I think of the farmers in St Elizabeth, the bread basket of the country, who provide most of the vegetables we consume. What impact will this have on their ability to survive and supply their customers?” he questioned.
On Wednesday, Finance Minister Dr Nigel Clarke said that the Government was backed into a corner in making the decision, noting that Jamaica was on the verge of being blacklisted by the World Trade Organization (WTO).
He said Jamaica has been “flouting' WTO rules for years.
He said one such rule requires that for any category of goods, where value-added tax is applied to one, it must be applied to all, regardless of origin.
He said the Government had the option of either putting GCT on local vegetables or local foodstuff but, in the current economic environment, that is not something it was prepared to do.
He said it would make conditions worse.
“So we've done the next best thing under the circumstances, which is to lift GCT off raw imported food. That makes Jamaica compliant with our international obligations.”
Follow The Gleaner on X, formerly Twitter, and Instagram @JamaicaGleaner and on Facebook @GleanerJamaica. Send us a message on WhatsApp at 1-876-499-0169 or email us at onlinefeedback@gleanerjm.com or editors@gleanerjm.com.