Opposition urges Gov’t to challenge new US remittance tax proposal
KINGSTON, Jamaica — The Opposition People’s National Party (PNP) is calling on the Government to solicit help from partners in the Caribbean Community to lobby the United States Government and Congress to reconsider current proposals to implement a new remittance tax.
The call follows reports that a US congressman is proposing that an amendment be made to the US Electronic Fund Transfer Act to impose a fee for remittance transfers to certain foreign countries — including Jamaica.Representative Mike Rogers, of Alabama’s 3rd Congressional District that includes Auburn, introduced HR 1813, titled Border Wall Funding Act of 2017 in the US House of Representatives on Thursday, March 30.According to the Opposition PNP, the implications of this Bill, if passed, on countries like Jamaica are quite damning when one considers that remittances account for a significant source of revenue for countries in this region.“Consider that two per cent of US$2 billion is US$40 million or just over J$5.1 billion. In noting this announcement and having regard to the United States-Caribbean Strategic Engagement Act of 2016, which declares that it is US policy to increase engagement with the governments of the Caribbean region, including the private sector, and with civil society in both the United States and the Caribbean in an effort to diversify and strengthen their economies, one would therefore have to question the impact of this proposal on the Act and its explicit intent of support to the region,” the PNP argued in a release this morning.The Opposition said it is obligated to call on the Government of Jamaica to act expeditiously in opening the diplomatic channel with neighbouring CARICOM partners with the aim of lobbying the USA Government and Congress to reconsider the current proposal, which is now making its way through the US Congress.“Enacted as written would have a devastating effect on Jamaica’s economy. Further, through direct channels with the USA, Jamaica and our CARICOM partners should seek clarifications on how this will impact the “USA/CARICOM Relations” where the USA enjoys a favourable trade balance,” added the release.The PNP said it seems inappropriate that the requirements of funding to build a border wall between the USA and Mexico would fall on the backs of the poor here in Jamaica and throughout the region. “In light of this, we believe it may be necessary for the GOJ to solicit the support of our friends in Congress as well as taking steps to galvanise the diaspora to lobby congress to stop the passage of this Bill.”