Peter Phillips blasts JLP’s tax package
“Devastating” – that was the initial reaction of the opposition People’s National Party (PNP) to the J$13.52 billion (US$10.4 million) tax package announced by Finance Minister Audley Shaw last week.
“It is going to be devastating in its impact, particularly on the working poor. We must remember that contrary to all that they are claiming- the truth is – what they are doing, is not what they have promised. They promised to raise the threshold without a tax package,” said the PNP’s spokesman on Finance, Dr. Peter Phillips in an early reaction to Shaw’s announcements.
On March 9, Shaw, in opening the budget debate, announced a raft of tax increases to finance the budget.
As result, Jamaicans are paying more for fuel, tobacco, alcohol and motor vehicle licenses to name a few.
This has not gone down well with the public and their concerns were highlighted once again when Phillips made his contribution to the budget debate on Tuesday.
Phillips, a former finance minister slammed the ruling Jamaica Labour Party (JLP) for a “confusing” budget process.
“The confusion was evident in the discussions of the Standing Finance committee when it became clear that the right hand of the government didn’t know what the left hand was doing….”
According to Phillips the exercise has revealed an inadequacy of the government’s management of the process and by extension its management of the economic affairs .
He added that overall, there was a 20 per cent increase in expenditure when compared to the previous budget for 2016/17, arguing that a bulk of that increase in expenditure was allocated for the repayment of the country’s debt.
“This is not a growth budget,” he said, while noting that the real increase was approximately six per cent when the cost for debt servicing is removed, and about one to two per cent in real terms when inflation is removed.
Phillips also criticised the government for what he has characterised as its failure to make adequate provisions for the ongoing fight against crime and violence.
Phillips – who was also a former Minister of National Security, said there was no evidence in the new budget of the “unprecedented” expenditure that the government had promised in its efforts to bring the country’s soaring murder rate and other crimes under control.
Turning to the tax package of the opposition spokesman said it was ill conceived and should be withdrawn as it was motivated by partisan concerns and not national interest.
The budget debate will continue on Thursday when opposition leader Portia Simpson Miller makes her presentation. On March 21, Prime Minister Andrew Holness will contribute to the debate that will be closed by Shaw on March 22.
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