PNP says its tax-break proposal more equitable than JLP plan

 

People's National Party Spokesman on Finance Julian Robinson says the party's proposal to raise the income tax threshold to $3.5 million is more equitable than the Jamaica Labour Party's plan to gradually reduce the income tax rate to 15%. 

 

Speaking at Monday's launch of the PNP's Manifesto Lite, Mr. Robinson argued that more Jamaicans, especially lower-income earners, would take home more money under the PNP's tax relief programme. 

 

"By doing so, those individuals have a higher propensity to consume. So some of those funds which will go into their pockets will be spent back into the economy and the government will benefit through indirect taxes like GCT. So we expect that what we are proposing will in fact help and support the growth that we are projecting for the economy while being consistent with our principles of equity, fairness and justice," said Mr. Robinson. 

 

He also reiterated that the PNP would remove taxes on overtime pay for workers earning less than $6 million annually. 

 

Chairman of the JLP's Manifesto and Achievements Committee Kamina Johnson Smith has sought to pour cold water on the PNP's tax-break plan, saying the move would require additional taxation.

 

Meanwhile, PNP Spokesman on Education Damion Crawford said 80% of teachers would pay no income tax under the PNP's plan to raise their threshold. Mr. Crawford said the move would save teachers up to $200,000 a year compared with just $80,000 under the JLP's plan. 

 

"As is indicated by our calculations, a teacher, for example, would only benefit from the Jamaica Labour Party's proposal to $80,000, while a person earning to the tune of $28 million like the Prime Minister will benefit $2.6 million. Therefore, this reduction from 25% to 15% would once again be disproportionately beneficial to persons like the Prime Minister as versus in comparison to persons like teachers, policemen, nurses, security guards and other persons employed under $3.5 million. It is important that we highlight to our teachers that under the People's National Party plan, over 80% of our teachers will pay no taxes and save up to $200,000 per year," he pointed out.

 

Both tax proposals are expected to be key issues in Tuesday evening's debate on the economy.

 

Team JLP comprises Fayval Williams, Dr. Christopher Tufton and Dr. Dana Morris Dixon. Representing team PNP are Julian Robinson, Peter Bunting and Kisha Anderson.

 

The debate, which is to start at 9:00 p.m., will be broadcast live on Radio Jamaica as well as sister stations, Power 106 FM, TVJ, TVJ International, TVJ's YouTube channel and JNN.