Wed | Sep 20, 2017

Tax plan not expected to affect inflation significantly – Wynter

Published:Friday | May 27, 2016 | 5:39 AM
Government’s tax package is not expected to significantly impact inflation says BOJ governor Brian Wynter.

Central Bank governor, Brian Wynter says the government’s tax package is not expected to significantly impact inflation.

However, Wynter warns there is some risk arising from the effects of the second round of the tax plan.

The government has imposed more than $13 billion in taxes to fund the revenue shortfall that would arise from increasing the personal income tax threshold this financial year.

The ceiling is to move up to $1 million in July.

The threshold is to further go up to $1.5 million next financial year.

Critics have argued that the tax package to support the increased threshold will negatively affect inflation, and in turn impact the spending power of Jamaicans.

Meanwhile, the Bank of Jamaica (BOJ) governor says the inflation rate fell to a historic low in the 2015/16 financial year.

Wynter says a rate of 3.0 per cent was recorded at the end of March.

The BOJ governor says a fall in consumer prices, such as the decline in energy, transport related costs and domestic agriculture food prices, contributed to the fall in the inflation rate.

 

BOJ Governor, Brian Wynter

Wynter was speaking at the BOJ's quarterly press briefing yesterday.