Allowances can’t be pensionable

THE EDITOR, Madam:

I am writing in response to the article, ‘Medical consultants suffer Supreme Court blow’, in The Gleaner on October 4.

I concur with the ruling of the court. This is because, as independent contractors, medical consultants or medical groups pay their own taxes for their own pensions.

The Government of Jamaica hires medical consultants as independent contractors to provide core medical services to the public sector. Independent contractors are not hired by the government as civil servants, despite their consultancy medical services.

The Jamaican government guarantees civil servants a salary and withholds payroll taxes from their salaries for pensions. The government does not withhold payroll taxes from consultants’ salaries for their pensions.

The United Kingdom (UK) public sector awarded £2.8 billion consulting contracts in 2022. The £2.8 billion is UK government public funds, so medical consultants can provide the public sector with medical services.

The UK government does not withhold payroll taxes from consultants’ salaries for their own pensions. In addition, UK consultants are not employed by UK government as civil servants, in which case, the government would have to withhold payroll taxes from their salaries for their pensions.

So, it was obvious that there was a misunderstanding as to who should pay consultants’ taxes for their own pensions.

CARGILL KELLY