Wisynco Chairman William Mahfood
Chairman of the Wisynco Group Chairman William Mahfood says the $10.1 billion special consumption tax slapped on sweetened drinks is a vigorous attack on a particular industry.
He also stressed that this will only deprive poor people of money to spend on other items, such as food, because it is the masses who consume these products and will not stop doing so because of the new taxes.
The Wisynco Group chairman said he needs greater clarity as to how this tax will be applied. Particularly, he questioned whether the tax will be applied to other forms of sweetened beverages such as condensed milk, syrup and other sweetened products.
Reiterating that it is the most vulnerable in society who buy these products, Mr. Mahfood said the argument that the most vulnerable will not be affected is flawed.
Mr. Mahfood stressed that the application of taxes must be broad-based and not sector specific.
The Wisynco Group, the country's leading manufacturer of sweetened drinks, generated profits of $1.5 billion or 39 cents per share compared with $1 billion or 26 cents per share during the same period of the previous year.
In the meantime, Vice President of the Jamaica Manufacturers and Exporters Association (JMEA), Cecil Foster, warned that the new tax package will lead to increases in the prices of locally manufactured goods, particularly beverages.
Mr. Foster noted that these increases will have a negative impact on the Buy Jamaican Campaign - which will be launched on March 5 - since it will increase the cost of Jamaican made products.
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