Tue | Mar 31, 2020

SHAW: IMF could cause 'bang-belly' economy

Published:Tuesday | April 23, 2013 | 5:11 PM

The Opposition Spokesman on Finance, Audley Shaw, has declared that the current Budget and Jamaica’s economic programme with the International Monetary Fund (IMF) could result in what he has characterised as a bang-belly economy.



His characterisation is meant to suggest that the path being pursued by the government will result in stunted growth for Jamaica.



Making his contribution to the Budget debate this afternoon, Shaw said the current path being pursued by the government may result in a high primary surplus and lower deficits, but it will not produce any growth.



Shaw has put forward a number of proposals he believes could bring growth to the economy and take Jamaica beyond the IMF programme.



He is calling for comprehensive tax reform which he says should include the provision of more accessible options for paying taxes.



Shaw has also proposed the formulation of a new National Export Development Strategy which could see tax holidays for investors in the export sector.



In the meantime, he is warning the government against the complete elimination of tax waivers to sectors such as tourism and ICT.



Shaw also says a time-frame should be set for the abolition of the Corporate Surtax, the Assets tax and the dividends tax to boost investment.



He says the government should open a special Foreign Exchange Window at the Bank of Jamaica for tax compliant manufacturers so that they can obtain foreign exchange at the official rate.



Shaw has suggested that the government move urgently to carry out the public sector transformation, pension reform and energy diversification.



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