Sun | Jun 20, 2021

Bar president joins in decrying withdrawal tax

Published:Friday | April 25, 2014 | 9:27 AM

Barbara Gayle, Justice Coordinator



KINGSTON, Jamaica:

The president of the Jamaican Bar Association, Donovan Walker, has joined the call for the Government to roll back the proposed withdrawal tax as he believes it will affect the most vulnerable in the society.




According to Walker, the tax is unjust especially for pensioners, minimum wage earners, civil servants and charitable organisations.



He says these groups are already burdened and the additional tax will have a further deleterious impact.



Walker is also taking issue with how the proposed tax would be applied saying those withdrawing smaller amounts are taxed at a higher rate.



The tax will be calculated on a graduated rate system, with withdrawals less than one million dollars being subjected to a 0.1 per cent tax.



This measure will mean that persons withdrawing $1,000 will have to pay $1 in taxes.



Conversely, persons withdrawing a sum greater that 20 million will have to pay a 0.05 per cent tax; those withdrawing more than five million, but less than 20 million will pay 0.075 per cent tax; and those taking one million to five million will pay 0.09 per cent tax.



The bar association president says this method of applying the tax is unfair.



He says if the Government plans to go ahead with tax, then special exemptions should be given to vulnerable groups.



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