What we will do is to make the Jamaica tax system more progressive by removing some of the GCT tax burden off locally manufactured goods onto imported goods; a way to stimulate local consumption and induce growth in the economy (see world bank expenditure and GDP table in above document). On the personal income tax side (PIT) we are putting more money in the working class people pocket in order to increase the savings rate as well as increase consumption driven growth by exempting up JA $800,000 from PIT. This is significant since almost 2/3 of wage earners are within this income threshold. Abolish the tax waiver system and tax both land and building. The General Consumption Tax (GCT) will be collected at the wholesalers and distributors level instead of spending significant amount of resources trying to collect from the little shop keepers. With interactive technology and digital cash register government can predict its monthly and annual inflow from the GCT across a wide sector of business.
Posted on: Mon, 07 Jul 2014 14:16:19 +0000