Tyrone Hall the study also said We therefore conclude that these taxes should be used only as a temporary means to mobilise revenue in situations of fiscal duress in addition it also said • BTTs yield more revenue in countries with deeper financial markets or higher inflation and deposit-lending interest spreads. Intuitively, the deeper the financial market, the higher the opportunity cost of conducting transactions outside banks. The higher the inflation, the greater the opportunity cost of holding money. The higher the interest spread, the greater the risk of lending money outside banks. Firstly we are no where near the medium term with this tax we are still in the short term (technically it hasnt even been implemented) so the study suggests the tax is great for the particular circumstances Jamaica finds itself in....secondly, in all the studies surveyed these countries do not have hostile environments to non-bank payments in Jamaica the mere fact we have a law making illegal transactions over J$ 1 million means that the operating environment is different from the latin american countries surveyed..We probably need to do an econometric analysis 2 years into this tax search.oecd.org/officialdocuments/displaydocumentpdf/?doclanguage=en&cote=ECO%2FWKP%282006%2922
Posted on: Tue, 22 Apr 2014 19:31:49 +0000
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