TAX WATCH

Finance minister to outline revenue measures today

The public glare is expected to beam down on Finance Minister Audley Shaw today as he outlines to the nation how the Bruce Golding administration plans to finance the $544.7-billion Budget.

Members of the public are expected to have their ears and eyed fixed to Shaw's opening Budget presentation to find out if workers who have been subjected to wage freeze over the past two years would be asked to fork out more for additional taxes.

However, most financial analysts believe there will be no new taxes.

"The revenue for the past fiscal year was roughly $350 million and it does not take much to move to $375-$380 million, so I don't see a problem as long as we maintain a hold on the expenditure side," declared financial analyst John Jackson at a recent Gleaner Editors' Forum, as he argued it would be unlikely Shaw would impose new taxes.

Shaw has already served notice that he is determined to keep a disciplined eye on the coffers and if this is done, the financing could be a walk in the park.

But already the Opposition, which staged a walkout of the Standing Finance Committee after a row with the Government, is making its voice heard on the Budget.

In a pre-emptive strike, Opposition Leader Portia Simpson Miller yesterday called on the Government to roll back general consumption tax (GCT) on consumer goods.

She also said appropriate measures are to be undertaken to protect the poor, working, businesses and middle classes.

The opposition leader argued that a GCT rollback on consumer goods would be a way of alleviating the burden faced by businesses and consumers.

"The Opposition notes that Jamaica is currently going through one of its most difficult economic periods, with 14 consecutive quarters of negative growth, the loss of over 100,000 jobs and the imposition of a wage freeze for public-sector workers," said Simpson Miller, in a media release.

"This has taken place within the context of rising petrol and electricity costs," she added.

Simpson Miller said the Opposition would be watching the finance minister's presentation closely and vowed to continue to be the advocate for the businesses, consumers and the less fortunate in our society.

But even without the strident tones of the Opposition ringing, there are some major issues with which the Government will inevitably have to contend.

With fuel prices soaring and the Bruce Golding administration pressured to trim the ad valorem tax on the commodity, it is expected that Shaw will be steering clear of any fuel tax this year.

Meanwhile, major cigarette manufacturer, the Carreras Group, has been howling over the last four years that it has been targeted.

Liquor producers have not been exactly silent on mounting taxes with the price tag on all alcoholic drink rising late 2010.

election budget

The Budget is already being dubbed by some detractors as an election Budget, allegations that have been dismissed by the governing Jamaica Labour Party.

The $544.7 billion to be spent this year is $47.1 billion more than the final figure of $497.6 billion for the 2010-2011 financial year.

Broken down, Shaw will be spending $352 billion for housekeeping expenses, up from the $338.7 billion he spent last year.

The finance minister plans to spend $193 billion on buildings, roads, machinery and other capital projects, reflecting a 21 per cent hike over last year's capital projects.

Today, Shaw is also expected to tell impatient civil servants and other public-sector workers just how the outstanding amount owed to them would be treated.