Yes, there is need for taxes, but…
The Jamaican Government has implemented new tax measures that are slated to take effect at the beginning of the New Year. These measures will see 17.5 per cent General Consumption Tax (GCT) being placed on various items.
This has created quite a stir as people in the society are voicing their discontent with these new tax measures. The Government has since been labelled cruel and inconsiderate by most, who are now demanding reasons for the new taxes.
The additions to the GCT list means that consumers will now have to pay increased GCT on items such as fruits, vegetables, ground provision, corned beef, pickled mackerel, eggs, salt, sugar, baking flour, poultry, fish and other essential items. Even wheelchairs, walkers and prescription eyewear will also attract GCT.
TEENage believes that these new tax measures will affect mainly the poor, as the majority of the items being taxed are essential for day-to-day activities. The only items excluded are rice and counter flour. This does little to ease the concerns of the general public.
We understand that taxes are needed to fund the budget and stabilise the economy. We also see the need to tax items that are basic necessities for most Jamaicans in order to gain adequate revenue to fully and effectively run the country.
However, this new package is having negative effects on the society, even us as TEENS. The popular trend of migration is now seemingly becoming the route many young people see as a means of escaping the seemingly unbearable living conditions being imposed upon them.
The fact is ‘brain drain’ is taking a toll on our country, as most young people are leaving Jamaica after college. They are now turning their attention towards overseas jobs and opportunities, as they see it as an easier way of life.
The Government seem to be unsure of what needs to be done as they have tabled three tax packages since the start of the 2009-2010 budgetary year. That means a new budget every quarter. And this pre-Christmas package is projected to meet the budgetary shortfall of $21.8 billion.
The demands of running the country effectively increase on a day-to-day basis. The salaries of teachers, nurses, the police and other government workers need to be paid. But where should the money come from and who should feel the brunt of the tax whip?
A part of the problem the Government faces is the collection of taxes, whether from unregistered businesses, self-employed individuals or registered companies.
It has been established that businesses place a huge strain on the Jamaican economy, as they evade paying basic taxes.
Also, the negligence of people refusing to pay income tax, even if they are self-employed, is also a factor that has caused these drastic measures.
It is a fact that only 33 per cent of Jamaicans actually pay taxes, and most of that number are in formal employment. The ‘hustlers’ do not see the need to pay taxes and this contributes heavily to our problems as a nation.
Perhaps this is because Jamaicans do not really tend to look on the betterment of the nation. Instead, they only see what is beneficial to them in the short term.
Everyone who claims to be Jamaican should pay the price of being Jamaican.
Everyone should start bearing the taxes being implemented, the businessmen who avoid taxation and the cottage industries that are unregistered all have a part to play.
Start now, because as the saying goes ‘every mickle mek a muckle’.