PNP used up funds earmarked to finance $1.5-m tax break – Shaw
Jamaica’s Finance Minister Audley Shaw says the Andrew Holness led administration will now have to look for new ways of implementing the promised tax break after indicating that the money has already been accounted for in the Consolidated Fund.
Shaw, in addressing the Private Sector Organization of Jamaica (PSOJ) Chairman’s Club Breakfast on Tuesday, said the People’s National Party led government had planned to use funds collected from the gas tax to partially fund the tax break.
“You will recall for instance that we had suggested that part of the payback of the J$1.5 million tax break would be the use of the tax on fuel.
“That was supposed to be a special fund that was set aside…could not be touched. Now that we are at the National Hero’s circle among others things we have found that…it is already accounted for in the Consolidated Fund”.
Under the plan, persons earning J$1.5 million or less would not have to pay income tax. The government had planned to implement the plan on April 1.
But Shaw told the private sector group that the government intends to keep its promise to the electorate.
“We are assessing a number of options and the Cabinet retreat will complete that process this week to mitigate the fiscal impact of this measure and we remain confident that it can be accommodated within the context of broader tax reform,” Shaw said.