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Fix the NHT system

Published:Wednesday | November 26, 2014 | 12:00 AM

Fix the NHT system


I have almost given up on owning a National Housing Trust (NHT) home because there are too many hurdles in my way.

After 24 years of contributing, I am yet to own my own home, and the only thing to look forward to is collecting my refund come January.

So, here are my ideas to improve the system, and I stand to be corrected if they are not feasible.

There should be a 2.5 per cent reduction in general consumption tax and a 4.5 per cent reduction in income tax to go towards a newly formed mandatory National Pension Fund.

The Government would not lose much revenue and may even stand to gain more in their coffers, because the overall reduction in taxes would ease some burdens and may even get more persons to be tax compliant when they can see the greater good.

The money that has been collected from myself and other contributors to the NHT who have not bought a house should be placed in the newly formed entity.

Many Jamaicans, including myself, have no pension plan in place because, after the basic necessities are dealt with, there is no coco left to full the basket.

NHT refunds are not given to homeowners, but are instead used to reduce their mortgages. I believe refunds should be cancelled altogether and put into the National Pension Fund instead.

There could even be a merger of the National Insurance Scheme (NIS) with the National Pension Fund and this would guarantee that all of us taxpayers would have something to rely on because our contribution would now benefit us in the long run.

Warren Hall