EDITORIAL - Protecting the nation's tax base

Recent raids and arrests by the Customs and Tax Administration departments demonstrate how pervasive customs and tax evasion has become in the Jamaican society. From cigarettes to appliances to motor vehicles, the evidence is overwhelming that scores of tax evaders exist in this country.

For years, we have talked about nailing persons who make a mockery of the Government's revenue-collection targets, but only recently have we seen positive activity that sends a signal that the authorities are serious about capturing tax cheats whose crafty attitude has ensured that millions of dollars do not reach government coffers.

Enforcing customs regulations must be recognised as a national-security issue and should be treated with the seriousness it deserves. Tax cheats among the self-employed and smugglers should be pursued relentlessly for perpetuating fraud on the people. There is a sense that the message is getting through to some people because the latest bust appears to have happened due to intelligence- gathering. It also helps that the tough law-and-order rhetoric of Customs boss, Danville Walker, has won him much admiration and people may be inclined to blow the whistle.

Tax cheats are depriving so many others of the social services and programmes which they ought to be enjoying and which are demanded in greater measure, especially during times of economic strain. Legitimate taxpayers are stretched to the limit, while there are those who scheme and connive to avoid paying their taxes.

Genuine concerns

For sure, there are genuine concerns about how government spends our tax dollar and how efficient the administration is being run. But the majority of Jamaicans are law-abiding citizens who understand that they are required to pay taxes so that the Government can undertake necessary projects for the national good.

But Mr Walker must be quite worried because, despite several layers of checks and the high volume of documentation necessary to clear goods from the wharves, it is still possible for a customer to walk away without paying duties. It is a great puzzle that millions of dollars worth of goods could be spirited off the wharves, and this demands some explanation. Even before such an explanation is given, one can assume a high level of collusion between the criminals and customs personnel. Additional house cleaning should definitely be on the cards for the Customs Department.

Businesses which are conducted with integrity should applaud the recent victories of tax-enforcement authorities, for many of the tax evaders are their direct competitors, and some level of fairness is being introduced - for the recent crackdown may well mean a levelling of the playing field.

Mr Walker and his team should continue to root out tax cheats, for if the Government is able to capture a significant portion of that lost revenue, it would go a far way in reducing the yawning gap in the Budget and may even give a reprieve to the overburdened taxpayer come next year.

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