Thu | Jul 19, 2018

You're taxing my patience, Mr Shaw

Published:Wednesday | March 30, 2016 | 12:00 AM


It is quite disingenuous of Minister of Finance Audley Shaw to suggest that funds he earmarked for the income tax relief from the existing fuel hedge tax was used up by the People's National Party.

Allow me space to critically discuss when the then Jamaica Labour Party (JLP) government implemented the gas tax, that party argued that the tax would be used to fix roads. So how come you want to take gas tax funds to implement income tax relief policy?

On March 11, this newspaper reported Audley Shaw mentioning that the tax relief would be a reality. He went on to say, "To fund the tax plan, the JLP administration plans to reallocate from the gas tax, improve collection of tax arrears, and additional GCT from additional expending."

We know that the gas tax is already part of the Consolidated Fund. Thus, to mention that you are going to reallocate the gas tax is misleading. How can you reallocate from one revenue source (gas tax) to supplement a shortfall from another revenue source (income tax relief)? It all boils down to bad economics and empty promises.