Parliamentary Committee to Review Tax Reform Proposals

KINGSTON — A Parliamentary Committee has been set up to review the Government's proposals for tax reform, which are slated to take effect on January 1, 2012.

Leader of Government Business in the House, and Minister of Education, Hon. Andrew Holness announced the committee members at yesterday’s sitting of the House of Representatives.

Chaired by Finance Minister, Hon. Audley Shaw, the  other  members include: Minister of Foreign Affairs and Foreign Trade, Hon. Dr. Ken Baugh; Minister of Agriculture and Fisheries, Hon. Robert Montague; Minister of Industry, Investment and Commerce, Hon. Dr. Christopher Tufton; Minister of Tourism, Hon. Edmund Bartlett; Member of Parliament for East Central St. Andrew, Dr. Peter Phillips; Member of Parliament for South St. Andrew, Dr. Omar Davies; Member of Parliament for South St. Catherine,  Fitz Jackson, and Member of Parliament for Eastern St. Andrew,  Anthony Hylton.

Prime Minister, the Hon. Bruce Golding urged the members to “take the assignment with the greatest seriousness."

“I imagine the committee will wish to receive submissions. The debate, in my view, has been proceeding with a fair amount of interest (and) I’m going to urge the Committee to consider what is in the broad national interest, and not necessarily what may be savoured by particular interest groups, no matter how powerful they may be,” he said.           

Mr. Golding said that the country’s tax system, which has evolved over the years, is still a major deterrent to the kind of investment that the country needs. “I hope that the Committee can assist us in arriving at a system that is more equitable, and a system that is more conducive to investment and growth, and job creation,” he added.

A Green Paper on tax reform was tabled in May by Minister Shaw. The reform  seeks to address the inefficiencies and complications in the country’s tax system; enhance compliance levels; broaden the tax base, and simplify the overall revenue system. The last major tax reform took place from 1986 to 1991, when the General Consumption Tax (GCT) was introduced, with various reform measures, some from the 2004 Matalon Tax Policy Review, which was implemented in 2005.

The Green Paper states that despite the enhancement measures introduced from 1991-2005, the imbalance and complexity of the tax structure have not been meaningfully addressed. 

By ALPHEA SAUNDERS, JIS Reporter