Robinson proposes digital nomad programme and electronic invoicing as alternatives to gov't's tax package

Opposition Spokesman on Finance Julian Robinson is proposing a $10 billion revenue plan that would rely on an electronic invoicing system to improve tax compliance and a Digital Nomad Programme to attract remote workers, instead of government’s $18-billion tax package.

He estimates that the invoice system could net about $8.6 billion and the nomad initiative could reel in about $1.5 billion in its first year.

In his contribution Thursday to the National Budget Debate in the House of Representatives, Robinson argued that the measures would avoid new taxes on Jamaicans recovering from the catastrophic effects of Hurricane Melissa, a position he described as fiscally responsible and socially considerate.

Robinson explained that the electronic invoicing system for Tax Administration Jamaica would automatically capture sales transactions at the point of sale, reducing underreporting and improving tax compliance without imposing any new taxes on Jamaicans.

He said that system could net $8.6 billion in revenues.

"Rather than waiting for businesses to upload their records after the fact, the transaction data is captured and transmitted to the tax authority automatically at the point of sale. The government is no longer relying on voluntary compliance with an upload requirement. The information flows directly and is matched automatically against what has been declared and remitted," he said. "The scope for under collection shrinks considerably because the data is already there, verified and auditable, without the business having to do anything beyond completing the sale."

According to Robinson, "Better data means better compliance, and better compliance means more revenues from the same tax rates, with asking anyone to pay more than what they owe, " he said.

He cited international examples, noting that countries such as Chile, Mexico, and Peru saw revenue increases of 3.7–14% after introducing similar systems.

He also proposed a Digital Nomad Programme, which would grant special permits for remote workers, freelancers, and entrepreneurs to live and work in Jamaica while employed by companies or clients abroad.

With a proposed US$2,000 visa fee and a target of 5,000 participants in the first year, Robinson estimated the initiative could generate approximately $1.5 billion in revenue and stimulate economic activity through spending on accommodation, dining, and local services, particularly leveraging Jamaica’s appeal as a tourist destination.

"We can appreciate that the more significant economic contribution comes from what those 5,000 people do while they are here," said Robinson. "They stay in hotels and rental properties. They eat at restaurants. They use local services. They spend. And that spending circulates through the economy."

On the expenditure side, Robinson called for targeted transfers from public bodies with surplus capacity, including $1 billion each from the Bank of Jamaica and the Factories Corporation of Jamaica, measures he said would not affect regular operations or the public.

He further proposed ending the annual $11.4 billion withdrawal from the National Housing Trust, arguing that in the wake of Hurricane Melissa and the extensive housing damage in western Jamaica, the funds would be better deployed to rebuild homes and stimulate local economic activity through construction and related industries.

Robinson also identified $2 billion in expenditure savings by deferring the Airports Authority of Jamaica’s planned corporate head office, a project still at the planning stage, without affecting essential services.

He estimated that his party’s alternative measures would create a net revenue gap of $15.6 billion, to be financed through additional treasury bill issuance, raising interest payments by approximately $940 million and adjusting the debt-to-GDP ratio marginally from 65.7% to 66.14%.

-Sashana Small contributed to this article.

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