Politicians at odds over proposal for tax on imported foods

By Kimone Witter    

 

People's National Party president Mark Golding and Opposition Spokesman on Agriculture Dr. Dayton Campbell are at odds over the imposition of a proposed tax if the party forms the next government.

 

The PNP kicked off its general election campaign this week, and at a political meeting in South East St. Elizabeth on Tuesday, Dr. Campbell said the party plans to impose a tax on imported foods to create a dedicated pool of funding that will help to develop the local agriculture sector.

 

But speaking at a Workers' meeting in Manchester on Wednesday, the PNP president said the party does not see a need for new taxes at this time.

 

Addressing what has been described as an innovative approach suggested by Dr. Campbell, Mr. Golding said the focus should be on ramping up local production to replace imported food, strengthening the economy and food security by reducing dependence on foreign produce. 

 

"You know, we have some ideas and some of our spokespersons from time to time may say certain things. One of them, for example, is that the existing taxes that are collected on imported food items, we should airmark those funds to developing local agriculture that can eventually replace those imports. So we grow local production to replace imported food. But we're not talking about putting any new taxes on imported food because we don't see the need for

that at this time," he declared. 

 

Mr. Golding touted the success of tax reforms such as the Employment Tax Credit that was initiated and implemented by the previous PNP administration.

 

He said the reforms have increased revenue without stifling economic activity.

 

"In fact, for most of the years of this government when they talk about no new taxes, they have in fact collected on several occasions a hundred billion dollars more in the fiscal year than the revenue estimates that they had put forward at the beginning of that fiscal year. That is how successful the tax reforms have been, and this is when the economy was hardly growing because they've been a spectacular failure when it comes to generating economic growth," he contended. 

 

Mr. Golding said the PNP is committed to practical solutions that empower Jamaicans, promote local production, and reduce the country's reliance on imports without imposing additional burdens on the citizenry.

 

 

The Jamaica Labour Party has rejected as ill-advised and a recipe for disaster, the policy indication by Opposition Spokesman on Agriculture Dr. Dayton Campbell, that the People's National Party will impose a tax on all imported food items should it form the next government.

 

JLP spokesman Marlon Morgan argued that applying a special tax on imported food will lead to an increase in the price of basic food items and will unduly burden the Jamaican people. 

 

"Such taxes would not be absorbed by importers but instead would be passed on to consumers, with the poorest among us likely to be the hardest hit as they of course expend a great proportion of their disposable income on basic food items," he warned, adding that the Jamaica Labour Party dismisses "in the strongest terms" the plan to impose additional taxes on the back of the Jamaican people. 

 

Mr. Morgan has also criticised Dr. Campbell's suggestion of a widespread ban on importation of certain food items which he said is also likely to drive up prices.

 

He dismissed the suggestion on the basis that there have historically been challenges in fully satisfying Jamaica's local demand for agricultural products, including potatoes and onions, which were referenced by Dr. Campbell. 

 

"At present Jamaica only imports from the United States and elsewhere to supplement local production. An argument may be advanced that Dayton Campbell is clearly speaking outside his area of competence, but the better view appears to be that the PNP's tax plan is consistent with the high taxation and inflationary policies that they have traditionally pursued," said the JLP spokesman. 

 

At the political meeting on Tuesday, Dr. Campbell said the next PNP government will stop the importation of onions and Irish potatoes into the country within the first two years of taking office.