PM Holness to contribute to budget debate today

Dr. Holness is expected to make the case for the new revenue measures, while continuing to defend his administration's stewardship of the economy. 

 

Development Economist Dr. Chris Stokes said these are two of the main issues that he anticipates the prime minister will focus on when he makes his budget presentation.

 

Opposition speakers in the budget debate have argued that the government's multi-billion dollar tax package is ill-conceived and have warned that it will be an added burden on taxpayers who are facing surging prices following Hurricane Melissa.

 

Dr. Stokes said he is anticipating a strong rebuttal to these arguments from Prime Minister Holness.

 

"In his presentation, this evening, I expect the Prime Minister to do, at a minimum, three things. The first, I believe, will be to make the case for the proposed tax increase and to counter the argument that it's simply bringing pressure on the less able, less financially secure in our society, and perhaps make the case that, you know, in other jurisdictions where the tax has come into place, it has not only raised revenue, but most importantly or more importantly, it has seen material increases or improvements in the health of the population relative to the lifestyle diseases that are associated with sugar intake."

 

Another expectation of the economist is for the Prime Minister to pick apart the opposition's counter revenue measures.

 

"I do expect him to essentially punch holes in the opposition's proposals. I believe they are solid proposals, however, he can credibly make the case that those proposals will not help for the current budget, which is an important point to make, I believe. And secondly, I do think that he's going to make fun or poke holes in starting at a place, going in a long, big, round circle and going back to increasing taxes. I don't think he's going to view that or represent it or comment on it in a positive manner. And finally, I believe that he will, once again, make the case that in times of crisis - he'll probably refer as Gilbert and any other number of crises that the country has gone through - that the Jamaica Labour Party are safe hands to be in," Dr. Stokes reasoned.

In the meantime, one trade union leader wants the Prime Minister to tell the country whether he views the opposition's alternative tax proposals as viable.

 

Vincent Morrison, President of the Union of Clerical, Administrative and Supervisory Employees (UCASE), believes the opposition's proposals are worthy of consideration.

 

"I would believe that it's going to be important that in a non-controversial way, the PM look on these issues - because I really believe that the opposition has really put some thought into the proposals they have put there - and to see how we can deal with them. Even though, you know, the budget is already passed by the Parliament, I don't see why we can't incorporate or make whatever adjustment that is needed going forward," he argued.

 

The opposition has proposed the introduction of an electronic invoicing system through Tax Administration Jamaica, a Digital Nomad Programme, and targeted transfers from public bodies with strong financial positions as alternative revenue measures.

 

Mr. Morrison also wants the Dr. Holness to respond to criticism of the withdrawal of funds from the National Housing Trust and the housing repair programme.

 

Finance Minister Fayval Williams will close the budget debate next Tuesday.