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Let value be the verdict on tax waivers

Published:Monday | January 14, 2013 | 12:00 AM


The reluctance to rescind the discretionary power of the minister of finance to grant tax waivers has been one of the sticking pointspreventing the Government of Jamaica from signing an agreement with the International Monetary Fund.

Tax waivers, granted by successive administrations for decades, result in the Government forgoing millions of dollars in revenues each year.

There is only one crucial question to answer: Is the net effect from the granting of tax waivers a positive one, which boosts the economy?

If the answer is yes, the practice is beneficial and should be continued. But if the answer is no, it should not be a guessing game what needs to be done.