Phillips listening to tax cries

Damion Mitchell, Editor - Radio & Online



The Finance Minister Dr. Peter Phillips has indicated that he is willing to make changes to the announced taxes to raise almost $20 billion for the Government’s coffers.



However, Dr. Phillips said those clamouring for the adjustments must present credible alternatives that would ensure that that the Government is able to close the Budget gap.



Dr. Phillips was speaking this morning at a Gleaner Editors’ Forum at the company’s North Street Office.



At The Gleaner’s Editors forum this morning, Dr. Phillips reiterated that the country is in on what he calls the edge of survival.



However, Dr Phillips said he has not closed the door on discussions with a view to making adjustments to the tax measures like the room tax on the hotel sector.



The 16.5 per cent GCT on electricity is another move for which Phillips has been harshly criticised.



Previously a 10 per cent GCT was imposed on electricity consumption over 200 kilo Watt Hours a month.



However last week, Dr Phillips announced changes to that arrangement.



Now the use of up to 300 Kilo Watt Hours per month will be tax free come June 1.



People using more than the 300 kilo Watt hours will be pay a higher GCT rate at 16.5 per cent.



At this morning’s editor’s forum, Dr. Phillips gave little hope that the GCT on light bills will be adjusted.



He said based on his research those using more than 300 Kilo Watt Hours of electricity a month can afford it.



However, given the commitment by the People’s National Party while it was in Opposition to roll back the GCT on light bill, we asked Dr. Phillips whether it was irresponsible or purely political for Portia Simpson Miller to have promised to do away with the tax on electricity.



Meanwhile, Dr Phillips said Jamaica will be getting more technical help from overseas to tackle the matter of tax evasion.



He said the assistance will be provided by multilateral partners and through direct partnerships with other countries.



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