Jamaicans will pay more

By Garth A. Rattray

I always get a nauseating feeling in the pit of my stomach every time I hear a news anchor announce, "Jamaicans will pay more..." This preface is usually followed by announcements of increases in fuel prices, food items, taxes, government services, statutory-body services, fees, levies, the United States dollar and so on.

So, when it was revealed that there was a plan to tax whatever we withdraw and however we withdraw anything from banking institutions ... it was just too much to bear. Frankly, the proposed tax of $1 in $1,000 was a brilliant plan. It really would not hurt most people's pockets. However, it was adding insult to the injuries already inflicted by the plethora of other taxes and by the rapacious fees charged by the banking sector. With income tax, statutory deductions, general consumption tax, special taxes on various items and services and double-compounded taxes on fuel ... our people have long ago reached their tax saturation limit.

People who try to save already pay some sort of taxes and numerous other deductions before their money ever reaches the bank. Then we get charged for banking services, although the banks already adamantly maintain an exorbitantly wide spread (the difference between the lending rate and the interest rate on savings), and although the interest on savings are taxed to the tune of 25 per cent. Nowadays, no one can live off their savings for long. So, in light of all the burdensome taxes already visited upon Jamaicans, this new tax proposal appeared unfeeling, offensive and even punitive. I'm glad that the administration withdrew it, albeit under severe pressure.

The constant increase in fuel prices translates into increases in everything else because fuel is integral in all phases of business, transport and production. Aside from that straight-forward cause of inflation, the falling value of our local currency contributes significantly to why Jamaicans keep paying more.

Major increases

In our society, the price of things doesn't just creep upwards - they sometimes increase in leaps and bounds. For instance, between January 2013 and January 2014, of the prescription drugs surveyed, Metformin and Tetracycline reduced a little, but the rest increased between two and 737 per cent. Fuel costs (regular gas, unleaded gas and diesel) increased between seven and 199 per cent. There were two regional reductions in schoolbooks, but all the rest increased by between two and 16 per cent. Tuition fees went up by between two and three per cent. Whereas a few (very basic) food items went down by as much as 35 per cent (cornmeal, in some places), most items increased and one item went up by 398 per cent. There was one prepared product that increased by 3,433 per cent.

One brand of unsweetened biscuit went up by 84 per cent and one brand of bulla cake went up by 22 per cent. Basic food items showed a variety of fortunes but (with the exception of one product), dairy products all increased, some astronomically. The prices of many farm products also increased sharply over that time period.

Toiletries didn't escape - sanitary pads/tampons increased by up to 42 per cent and toilet paper went up by up to 46 per cent. One deodorant went up by 65 per cent and one mouthwash by 112 per cent. Most kiddie's drinks went up, one by as much as 201 per cent.

My point is this ... although so many prices are increasing, salaries are not going up commensurately. In fact, most people are going through a wage freeze (either imposed by the government or self-imposed in order to remain competitive).

With so many people being unemployed and most wages remaining static while prices increase, Jamaicans can also expect to pay more in destitution, mendicancy, corruption and, of course, criminal activities of all kinds.

This administration must act quickly, boldly, decisively and equitably to prevent the rapid deterioration of our society.

Garth A. Rattray is a medical doctor with a family practice. Email feedback to columns@gleanerjm.com and garthrattray@gmail.com.