We all failed - Davies

Edmond Campbell, Senior Staff Reporter

FORMER FINANCE Minister Dr Omar Davies has conceded that he and his successors in the finance portfolio over the last 20 years have failed to pull in significant tax revenue from high-profile tax dodgers.

Making his contribution to a near six-hour debate on the controversial Revenue Administration bill in Parliament on Wednesday, Davies argued that the proposed law was intended to enhance revenues and bring about greater equity in taxation.

"If you look over time, all the proposals, all the attempted measures to gain additional revenues from higher-income groups; if you examine the reality, we have failed," he said.

According to Davies, the Pay As You Earn (PAYE) taxpayers and those who purchase basic commodities and pay General Consumption Tax (GCT) have consistently borne the burden of revenue measures.

"We know how to come down hard on those at the bottom. We tax them with GCT. We tax them with PAYE," Davies stressed.

However, he pointed out that respective administrations have not yet resolved "the issue of being able to take a fair share from those at the top of the ladder".

"They have become accustomed to paying less than their fair share and this amendment is aware of it," Davies insisted.

The bill to amend the revenue administration law increases the powers of the revenue authorities to go after tax dodgers.

"The reality is that in this House, at this time, there is a minister of finance, and two previous ministers of finance and all of us have had and are having the experience of seeking to maximise revenues given the social conditions, economic conditions, economic needs of the country."

The other two are current Finance Minister Dr Peter Phillips and former finance minister, now Opposition spokesman on finance, Audley Shaw.

Bark but no bite

Davies suggested that finance ministers have barked vigorously over time but have had no bite in terms of collecting tax revenues from high-profile tax dodgers.

"We have all spoken sometimes with more bravado than substance of our intention to ensure that every cent due to the Government is collected," Davies said.

He said that international experts from the multilaterals have argued that an examination of the "assets" in Jamaica and the "holdings of the small percentage of the population, reveals a disjuncture between the value of those assets and what we collect.

"To me, it is a personal embarrassment that there are issues which we should have seen or felt but for whatever reason or ... tribalist thing, we can't make a move, we (are) going to lose some votes, we are taking positions which are not sustainable," he said.

The Government used its superior numbers in Parliament to push through a bill to amend the revenue administration statute, described by the parliamentary opposition as a spy law.