Robinson pressed Finance Minister on digital service tax

Opposition Spokesman on Finance Julian Robinson has criticised the Government for not providing a comprehensive plan about how the proposed digital service tax will be implemented, arguing that Finance Minister Fayval Williams’ explanation on Tuesday left more “questions than answers.”

Robinson, who was making his contribution to the Budget Debates in Parliament on Thursday, stated that when the tax measure was first announced, it was assumed that it would apply to subscription companies based in foreign jurisdictions.

However, he asserted that Williams' presentation in the House on Tuesday gave the impression that the tax would apply to goods purchased on online platforms.

Robinson said the move was inconsistent with the government’s recent decision to raise the threshold on online purchases, increasing the customs duty exemption from US$50 to USD$100, and from US$500 to US$1,000 for travellers.

He argued that such a tax would work against the relief the initial measure intended to provide.

“The inconsistency here needs to be explained. You cannot, on one hand, increase the threshold to give consumers a break on online purchases and on the other hand, you take back what you have just extended,” he said.

Williams on Tuesday pointed to the pressure local retailers are feeling from customers shifting to online shopping.

“Our local businesses have to compete with tax-free items, and I want Jamaicans to consider that it’s the people who work in these retail shops, in these businesses, who are affected when they close,” she said.

She, however, stressed that “there is no thought to curtail digital purchases from wherever in the world you buy.”

She said the revenue measure is aimed at ensuring that Jamaica gets its “fair share” of the global digital economy.

But, Robinson said there is also confusion on how the tax will be collected and how it will be enforced.

“The Minister owes the House an explanation. She has been here twice, and I must say, having spoken twice, it is as confusing as it was before. I expect the Minister, when she comes in her closing, to give a clear and complete explanation of how the measure will actually work and how it will be implemented,” he said.

- Sashana Small

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