Finance Minister's Probox comment sparks criticism

By Racquel Porter/Clinton McGregor     

 

A comment by Minister of Finance Fayval Williams in relation to the purchase of a Toyota Probox motor vehicle is sparking criticism.

 

Speaking on TVJ's All Angles on Wednesday evening, Minister Williams outlined that employees stand to receive an additional $2,000 per month from the announced increase in the income tax threshold. 

 

The minister had announced while opening the Budget Debate on Tuesday, that the income tax threshold would be increased to $2 million over a three-year period. The threshold will move to $1.8 million come April 1, then to $1.9 million next year, and $2 million the following year. 

 

Providing an example of how the savings could be used, Mrs. Williams said after three years, employees would have a "tidy sum" that could go towards the purchase of a Probox. 

 

But the comment by the Finance Minister has been criticised by some social media users as being out of touch. Others have viewed the example as disrespectful.

 

An Instagram user said "Two thousand dollars for three years, look at minimum wage, cost of living, our daily lives are in recession, our health care, but the real question should have been would the minister be able to save two thousand dollars for three years if the table turns?"

 

An additional $2,000 per month for three years would amount to roughly $72,000.

 

Concerns have been raised about a general increase in prices and a reduction in the purchasing power of money.

 

Economist Keenan Falconer believes the Finance Minister may have been better able to illustrate her point, had she used another example. 

 

"The overall principle upon which increases in the income tax threshold are based is that consumers make decisions at the margin. Now, what I mean by that is if I go to the supermarkets and I see an item for let's say $800 and then I see the same item for around $770, I'm going to take the one that costs $770 even if it might take me a little extra longer to look for it. So that additional $30 savings, it adds up. It can do something, but it probably can't do everything; it can't do a lot on its own."

 

He argued that the benefit should not be oversold as being necessarily life-changing. 

 

"It's just intended to offset a particular expense where okay, if this cost $2,000, I didn't have it previously but now I do and I can be able to cover it," he suggested. 

 

But Mr. Falconer said the conversation now needs to shift to how Jamaicans can generate additional wealth. 

 

"We don't generate enough wealth overall and because of the large size of the informal economy, you're not gonna find that many person's contribute income tax in any event because Jamaica's salary profile is among the lowest in the Caribbean. So we'll continue to have this conversation repeatedly where we now have to think about increases and decreases in increments and whether that can now keep up with the cost of living."

 

During his contribution to the Budget Debate on Thursday, Opposition Spokeman on Finance Julian Robinson also took a swipe at the Finance Minister over the Probox comment. 

 

Mr. Robinson joked that his constituents have been asking since Wednesday night where they could get possibly get that vehicle at that cost. 

 

"They said they want that Probox, that when you put aside $2,000 a month for three [years] you can pay down on that Probox. So they have asked me to ask you because they are ready to buy that Probox, so I want to ask the minister, please tell me where that Probox is."