KINGSTON, Jamaica – The Opposition walked out of the debate on new tax measures at Gordon House Tuesday, but the government went ahead and passed the measures any way.

The revenue measures including a $16.4 billion tax package and $45 billion in contributions from the National Housing Trust (NHT) over four years, will affect GCT on telephone calls and phone cards; education tax; customs administration fees on all imports, except for charities and the bauxite sector; local stamp duty and transfer tax rates; Cash Pot, Lucky 5, Dollaz, Pick 3, Pick 2, Pick 4 and Lotto and Super Lotto games winnings; Property Tax; fees and taxes paid at ports of entry; tax on dividends payable to residents; and add a surtax to the taxable income of large unregulated companies.

Minister of Finance and Planning, Dr Peter Phillips, who was closing the debate on the first supplementary estimates for 2012/13 at Gordon when he tabled them, disclosed that in addition to the tax measures, the NHT will be required to contribute $11.4 billion per year for the next four years, or $45.6 billion to the government’s coffers towards fiscal consolidation.

Phillips claimed that despite the huge NHT contribution, the fund’s mandate would not change and the distribution will not impair its viability.

However, Leader of the Opposition, Andrew Holness, told a press conference called after the walkout, that he was concerned that the government would be “sucking out $44 billion out of the NHT over the next four years and the effect it will have on its performance”.

Holness, who called the press briefing at Gordon House explained that his party acknowledged the magnitude of the economic problems facing the country, and has been trying to cooperate with the Government but could not accept the package.

“The Opposition is of the view that these measures will have a negative effect on our economy,” Holness said.

He explained that the Opposition expected greater emphasis on tax reform but instead was confronted with more taxes, which would, in effect, kill growth in the economy.

He called on the government to create an atmosphere of confidence and promote investments, but insisted that the tax package could not do that. He said that the Opposition is always prepared to be strident and would continue to make its voice heard on the matter.