JIS News

President of the Private Sector Organization of Jamaica (PSOJ), Joseph M. Matalon, has explained that the organization is not in favour of the one percent increase in the General Consumption Tax (GCT) rate announced in Parliament last Thursday.
‘We believe that the Government may find that there are diminishing returns in terms of the revenue performance from increases in the rates of GCT, and that it would have been much more efficient, from an economic standpoint, to have even further widen the base and use the traditional revenue generated to actually reduce the rate of GCT,” Mr. Matalon reiterated.
He also stated among the “other recommendations” that should be considered was the unification of the “tariff structure”, and not the “tax structure” as was reported in his interview with the Jamaica Information Service (JIS) on Friday (December 18).
In the interview, Mr. Matalon, who chaired the 2003/04 Tax Policy Review Committee, said that he believes that there is recognition among the private sector membership that tough measures were required, and that it was anticipated that, in addition to the initiatives already announced that are designed to compress the level of public expenditure, there was going to be the need to raise significant additional revenue.
However, he said that one of the PSOJ’s main disappointments was the “fairly narrow range” of taxes targeted, rather than a more “comprehensive approach” to include various other tax inputs and regimes, such as corporate and personal income tax and property tax.

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