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Mark Golding
The Opposition People's National Party is suggesting a moratorium on statutory deductions as part of measures to deal with the economic impact of the coronavirus.
During a news conference Wednesday afternoon, Opposition Spokesman on Finance Mark Golding said he agreed with the government's announcement of cash transfers to certain companies based on the number of employees they retain, as well as to persons who lose their jobs.
However, Mr. Golding wants to see more done, hence he has suggested a moratorium on statutory contribution payments for the duration of the COVID-19 crisis, which he says will take the burden off employers if they keep their workers employed.
Mr. Golding explained that the moratorium would apply to affected employers as well as workers whose salaries have been cut.
He also proposing a $50,000 cash transfer to families on the Programme of Advancement through Health and Education (PATH) for two to three months.
Mr. Golding said while the government has waived customs duties on items such as hand sanitisers and masks, the general consumption tax (GCT) should also be temporarily removed.
"We don't think, at this time, it is good for the economy or the society to be charging GCT on items that are needed to be used in a greater volume than normal - soap and hand sanitsers and indeed on medications," he reasoned.
Not enough
Mr. Golding said the $10 billion contingency fund set aside to deal with the economic fallout from the coronavirus will not be enough.
He thinks more than $20 billion could be required.
He is suggesting the government further reduce the primary surplus target to allow space for more spending.
Mr. Golding said the government might also need to borrow to help with the recovery.
"For the next three months or however long it lasts, you may need to adjust your expenditures so that you're upfronting these amounts from resources that you have to raise through taxes that are coming in already or, if necessary, from some domestic borrowing to ensure that the society isn't too damaged by this and that the recovery can be rapid once the virus passes," he said.