A call for tax reform

THE EDITOR, Madam:

As Jamaica navigates its economic landscape, it’s time to reconsider our tax structure. The current system places a significant burden on individual taxpayers, while key industries like tourism and agriculture enjoy exemptions.

Tourism, a major contributor to our GDP (35%), and remittances (10%) are crucial revenue streams. However, hotels have been exempt from direct taxes since 1890, and agricultural incentives offer zero per cent taxation. It’s time for these sectors to contribute their fair share.

Abolishing direct income taxes and focusing on the General Consumption Tax (GCT) could simplify our tax system and promote fairness. A People’s Incentives Act could help reduce corruption and level the playing field for all Jamaicans.

The question is: can Jamaica afford to maintain its current tax incentives? Some argue that targeted relief is possible if matched with revenue measures or spending cuts. Others warn that abolishing direct taxes could lead to revenue gaps.

I think Jamaica should reconsider its tax policies to promote economic equity and growth now.No time to waste.

MICHAEL SPENCE

MICSPEN2@HOTMAIL.COM