Dear Editor,
Each year budget presentations drive fear in our people taking some to the point of panic attacks. Whereas I understand that taxation is necessary to finance government, some ways of collecting revenue are simply high-profile theft.
The new method to come into effect on June 1, 2014 is certainly not an ethical way to raise revenue. In my training and experience in business education and administration, I have observed that many First World countries are paying the same taxes as us in Jamaica. Over these years, we have not managed our resources well as a country, and as such new governments continue to change policies. So when we hear "Jamaica is poised to be better", I am certainly not comforted as this seems impossible in my lifetime.
Recently consumers have had to dig deeper in their pockets to pay mercilessly high fees charged by some commercial banks. How can a customer be asked to pay to encash a cheque already prepared on that bank and sometimes the same branch?
A recent study was conducted by the Caribbean Policy Research Institute and the Bank of Jamaica, but a straight-line comparison was done with countries not suffering as we are. The comparison with the United States and other countries in Europe and the Caribbean did not reflect a true picture, as those countries have stable currencies, stable inflation rates, and do not have electricity costs about to reach US$0.40 per kWh.
Don't get me wrong now, taxation is very important, but instead of taxing Jamaicans the second or third time around, the Government should collect the over $6b in revenues from profits of commercial banks.
Consider a two per cent drop in MP salaries. Consider one less overseas trip per month for government officials. A further two per cent tax on cigarettes and alcohol beverages could provide revenue of $2m per month.
A recent Daily Gleaner article stated that some $50,000 is allocated per month for cellphone calls by government officials. Perhaps this could be dropped to $10,000 per month. Savings could also be achieved if government official switch off their SUVs (mainly Prados and Pajeros) while in Parliament. Oftentimes the engines are running for the 3-5 hours of a sitting in Gordon House. Remember, we have over 60 MPs who meet sometimes twice weekly.
If the Jamaican Government continues to increase taxes in ridiculous ways people will not want to invest here. Schools that train skilled workers for overseas employment will continue to do good business with Jamaicans by providing permanent lucrative job opportunities overseas. Many people would wish to remain in Jamaica, the land of their birth, but with these harsh economic policies the most qualified are forced to leave for "greener pastures", resulting in major brain drain for Jamaica. Let the discussion continue.....Shalom!!
Colin O Jarrett
Business Educator and Administrator
HECOIN
cojarrett@hecoin.com
There are ways other than ridiculous taxes
-->
Each year budget presentations drive fear in our people taking some to the point of panic attacks. Whereas I understand that taxation is necessary to finance government, some ways of collecting revenue are simply high-profile theft.
The new method to come into effect on June 1, 2014 is certainly not an ethical way to raise revenue. In my training and experience in business education and administration, I have observed that many First World countries are paying the same taxes as us in Jamaica. Over these years, we have not managed our resources well as a country, and as such new governments continue to change policies. So when we hear "Jamaica is poised to be better", I am certainly not comforted as this seems impossible in my lifetime.
Recently consumers have had to dig deeper in their pockets to pay mercilessly high fees charged by some commercial banks. How can a customer be asked to pay to encash a cheque already prepared on that bank and sometimes the same branch?
A recent study was conducted by the Caribbean Policy Research Institute and the Bank of Jamaica, but a straight-line comparison was done with countries not suffering as we are. The comparison with the United States and other countries in Europe and the Caribbean did not reflect a true picture, as those countries have stable currencies, stable inflation rates, and do not have electricity costs about to reach US$0.40 per kWh.
Don't get me wrong now, taxation is very important, but instead of taxing Jamaicans the second or third time around, the Government should collect the over $6b in revenues from profits of commercial banks.
Consider a two per cent drop in MP salaries. Consider one less overseas trip per month for government officials. A further two per cent tax on cigarettes and alcohol beverages could provide revenue of $2m per month.
A recent Daily Gleaner article stated that some $50,000 is allocated per month for cellphone calls by government officials. Perhaps this could be dropped to $10,000 per month. Savings could also be achieved if government official switch off their SUVs (mainly Prados and Pajeros) while in Parliament. Oftentimes the engines are running for the 3-5 hours of a sitting in Gordon House. Remember, we have over 60 MPs who meet sometimes twice weekly.
If the Jamaican Government continues to increase taxes in ridiculous ways people will not want to invest here. Schools that train skilled workers for overseas employment will continue to do good business with Jamaicans by providing permanent lucrative job opportunities overseas. Many people would wish to remain in Jamaica, the land of their birth, but with these harsh economic policies the most qualified are forced to leave for "greener pastures", resulting in major brain drain for Jamaica. Let the discussion continue.....Shalom!!
Colin O Jarrett
Business Educator and Administrator
HECOIN
cojarrett@hecoin.com
There are ways other than ridiculous taxes
-->