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School Jamaicans on importance of paying taxes, says Matalon

Published:Sunday | May 8, 2011 | 12:00 AM
At a discussion on tax reform and the economy, seen here (from left), Brian Denning, member of the ICAJ Taxation Committee and tax partner, PricewaterhouseCoopers Jamaica, holds the attention of Joseph M. Matalon, president of the Private Sector Organisation of Jamaica; Dr Adrian Stokes, vice-president of strategic planning, Scotia Investments Jamaica Limited, Anya Schnoor, chief executive officer, Scotia Investments, and Danny Roberts, vice-president of the Jamaica Confederation of Trade Unions, at a webinar hosted by Scotia Investments at the Scotia Training Centre, 4 Acadia Boulevard in Kingston, on Thursday, May 5. - Rudolph Brown/Photographer

President of the Private Sector Organisation of Jamaica (PSOJ), Joseph M. Matalon, says the Government should establish a public education programme to make Jamaicans aware of the importance of paying taxes.

The PSOJ head, who headed a task force to transform the tax system in 2004, said while there were encouraging initiatives coming out of Finance Minister Audley Shaw's Budget presentation last week, many Jamaicans were still in the dark when it comes to tax-related issues.

"We really believe the whole issue of tax reform needs a much greater level of public awareness and education," said Matalon, who was among presenters at Scotia Investments' webinar on tax reform Thursday.

"I don't think that we should have major tax measures being announced at Budget time that haven't been thoroughly discussed and analysed and some consensus reached."

Once such dialogue is complete, Matalon said there should be the release of a Green Paper that would provide the general direction of tax measures to the public.

A joint select committee of Parliament could then hear submissions from citizens on whether the proposed reforms are suitable.

Matalon warned that when legislators leave citizens out of the loop, it is usually to the country's detriment.

"When somebody is faced with a new measure that they have not heard of before, or its policy imperatives, it's very easy why people resist so strongly," he said.

"At the end of the day, what comes to the Parliament for enactment is something that has been thoroughly debated and thought through," he said.

'Entirely positive' move

Reflecting on the Shaw budget, Matalon welcomed the announcement that transfer tax and stamp duty on securities will be removed effective May 16. He described the move as "entirely positive" and is bound to reduce the cost of doing business, deepening the capital markets, and access to credit.

Other seminar presenters, trade unionist Danny Roberts, and tax expert and partner at PricewaterhouseCoopers Jamaica, Brian Denning, agreed that Government should widen the tax net.

They said it was critical if the economy is to improve.

"One of the problems at the moment is that there are too few people contributing to the economy in terms of taxation," Denning said.

"By widening the tax net, it would actually bring in more taxes and help to reduce the tax burden across society."

During his 2008 Budget presenta-tion, Prime Minister Bruce Golding said pay-as-you-earn (PAYE) workers bear the brunt of Jamaican taxes. He named doctors, lawyers, and engineers as among the biggest delinquents.

Last week, Shaw announced new measures to improve compliance among these professional groups.

- Howard Campbell