Chybar bats for productivity-first approach amid tax-cut discussions

WESTERN BUREAU:

Moses Chybar, the president of the Westmoreland Chamber of Commerce, says while the tax measures put forward by the nation’s two major political parties may provide short-term ease, they could also undermine fiscal stability if not tied to stronger productivity.

At its recent manifesto launch in Montego Bay, St James, the ruling Jamaica Labour Party (JLP) pledged to cut the PAYE rate from 25 per cent to 15 per cent and raise the income tax-free threshold to $2 million within a two-year span.

In contrast, the opposition People’s National Party (PNP), during its mass meeting in Mandeville, Manchester, said it would lift the tax-free ceiling to $3.5 million per annum, effectively exempting a wider group of Jamaicans from paying income tax.

According to Julian Robinson, the PNP’s spokesman on finance, his party’s initiative would be financed by “organic revenue growth” and reprioritisation within the Government’s $1.3-trillion budget, while stressing that “no new taxes” would be levied.

However, in an interview with The Gleaner, Chybar said while tax relief may ease financial pressure in the short term, it does little to address the country’s deeper challenges.

“Governments rely on taxes to fund vital services such as healthcare, education, fire services, policing, and national security. Simply reducing the tax intake, without clearly addressing how to expand the economy’s capacity to earn more, can undermine the state’s ability to provide these essential services,” said Chybar.

Chybar further argued that productivity, not just tax cuts, is the key to long-term prosperity, pointing to agriculture as a sector with immediate potential.

He called for duty-free concessions on greenhouse and agro-processing equipment, a five-year tax-free allowance for new agricultural investments, and smarter import duties that would protect local producers where Jamaica can compete.

“These additional revenues can fund the very incentives that grow our industries,” noted Chybar. “That way we improve food security, reduce import dependency, and build resilience in the economy.”

While Chybar welcomed measures to ease the tax burden, he was firm that sustainable prosperity requires more that breaks being advanced by the two parties.

“The more Jamaicans earn, the more the country produces, and the more stable government revenues become. Helping people earn more, rather than simply taxing them less, is the sustainable path forward. It is good for individuals, good for businesses, and good for Jamaica,” he said.

albert.ferguson@gleanerjm.com