JMA knocks CET, port tax reforms
Published:Friday | July 29, 2011 | 12:00 AM
The Jamaica Manufacturers' Association (JMA) said Tuesday that the proposed reduction in the Common External Tariff (CET) threatens the existence of some locally made products, and could be harmful to "agriculture as well as the socio-economic health of the country".
The trade association was equally concerned that a proposed 25 per cent "upfront payment" at the ports on imported raw material would hike production costs and eventually result in loss of jobs.
The proposals are included in the tax reform policy tabled for discussion in April.
Its statement on the CET endorses the position of poultry farmers enunciated several weeks ago, that a proposed 80 per per cent duty reduction on imported chicken - from 100 per cent to 20 per cent - could wipe out the sector.
JMA said that if the CET were to be lowered, it would hit producers of rice, flour, milk, cooking oil, coffee, fruit and vegetable juices, cigars, rum, beer, poultry, soaps and cement.
"While items such as fruit and vegetable juices and soaps have improved its competitiveness in the local market, this will be eroded with the implementation of the reduced CET and other products such as rum and beer will have little insulation or protection against increased competition from imports," the JMA said.
The 25 per cent port tax, it said, which would affect raw materials, packaged materials and capital goods, has implication for factory closures, job losses, as well as an increase in the cost of goods.