The GOJ has instead chosen to go hire a tax consultant to figure out how to improve tax collection from Jamaicans.
I am sure a simple study by a couple of university students would show the GOJ would collect more by lowering GCT rate to 10% and tax everything including salt !
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Warren's Blog 
I was proposing 12% but 10%’s good too.
It takes a tax consultant to figure out that to ensure compliance lower the tax and tax everything?????
Jay, the PSWG proposed that the government reduce the GCT rate to 12.5% and tax basic food items, however Dr.Phillips did not follow this policy, he stated that the country would have lost billions in revenues.
are we spouting commonsense or voodoo economics here as i would think that expanding the tax base and reducing the tax by an amount to be calculated by tax experts could realise greater revenues???
Same ting me a say too
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Jay, what is so magical about the 10% number? Can you provide some rationale use in arriving at that number and the conclusion that setting the GCT at 10% will lead to…. “GOJ would collect more”? Aren’t you being a bit arbitrary here? Is there ANY scientific or data driven analysis done by yourself and you are willing to share with the rest of us (i.e to convince the rest of us) that the 10% was not pull from thin air?
More of what? More GCT or income taxes or property taxes or….? BTW, why not make it 1% or 5%, since lowering will lead to more…..? There are some of us who believe it should be much higher, maybe in the region of 25% and the lowering of the personal income taxes. While we at it, raise the property taxes to reflect both land and improvements valuations.
There are far too many Jamaicans that are part of the informal economy and pay no income taxes. We need to increase the criminal and financial penalties for tax evasion, as this is the only way Jamaicans will be complaint. Jamaicans don’t like to pay for anything, so I fail to see how lowering the GCT rate will result in “more” taxes to the GOJ coffers.
There is nothing magical about the 10% figure, but notice I said get some University students, many who have no job and have them complete the study to confirm my belief. BTW someone reported that the committee on tax that had been put together by the finance minister has recommended 12.5% and they did provide data to support that this would lead to move revenue due to greater compliance.
There is proof here in Jamaica, that this is true as when import duties on cars were dropped under the last administration, the GOJ collected more. The duties were increased last year and the end result was the GOJ lost over $1.5m in the very first year.
The idea of raising lower personal income tax is a nice one but no government is going to lower a tax rate for something that is so sure. I would not recommend lower of personal income tax and higher GCT, given the rather high unemployment rate and large informal sector.
This would create greater hardship for those at the lower level unless a very good social net is put in place to address the fall out that is likely to occur.
If so many Jamaicans are not paying personal income tax, lowering the rate is not likely to get them to pay, as they are already at 0%. Note the lowering of GCT is not the same, its not a matter of compliance, here instead all it does is increase the tax base , which should lead to more collections.
On the matter on increase land tax, that has comes with it’s own problems but I believe a better valuation process is required to ensure that taxes due are collected vs raising the taxes.
Let’s not forget that persons who have retired and who may own property are not earning to pay increased rates and thus simply increase the rates for those already paying is not the right move.
I agree we must improve the criminal penalties for tax evasion, but before get their, there is one thing we must do.
Every professional person in Jamaica, who earns and income must be assessed and their income determined. If during the income tax returns it is found these persons are evading taxes, then the law should come down on them like a ton of brick and that includes the politicians.
How can a many driving an Audi A7, have a BWM X6 and a Prado parked at his $100m home pays next to nothing in income tax based on his stated total income of just $2.5m for the year.
The people who earn the most in Jamaica pay the least, but no one goes after these guys, instead the focus is always tax those who are already compliant.
Don’t tax people more, instead tax more people.
From the GOJ perspective however there must be a demonstration of better use to people taxes. The wanton waste , cost overrun and wide scale corruption must be dealt with as well as the improvement in the provision of services in the country.
It hard to tell a man to pay more and when you call 119 you get no response or the response is ” call so and so or we have no vehicle”.
GOJ must become more prudent in their expenditure and the people must demand greater accountability.
If our Government is willing to borrow money and then waste, only God knows what they will do if they actually manage to earn those funds without having to pay it back.
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