Letter of the Day | The tax burden should be shared

THE EDITOR, Madam:

Having scarified over a prolonged period, in recent years, Jamaica achieved a level of economic success as evidenced by improvement in all major macro-economic measures, improved ratings from global rating agencies and creation of fiscal space to begin addressing long-neglected social issues. Hurricane Melissa literally blew us off course, no pun intended.

The Government had no choice but to respond, and increased taxes forms a core of the response. Imposition of new taxes is never a preferred route and the sectors/groups most impacted will likely be vocal in their opposition to the new measures. Some may even go further to declare that businesses may not survive.

However, in a crisis –and the aftermath of a direct impact of a category 5 hurricane fits that description perfectly – all stakeholders must understand individual and collective sacrifices are an imperative. No group should believe that they are exempt and the burden should be carried by others.

I inquire of the Government and the Minister of Finance & the Public Service in particular if, during the deliberations as to where the additional taxes should be applied, a temporary pause in the hugely generous tax concessions offered to companies listed on the Junior Stock Market, was considered.

We will recall that the concession is structured at ‘no corporate tax for five years after listing and fifty per cent of the liability for the subsequent five’. There were varying viewpoints on whether, even in the best of times, Jamaica could actually afford it. Some countries studied it and decided against it as they could not afford to give up that level of tax revenue. That said, Jamaica stuck with it.

But the event of October 2025 has pushed us outside normal times. A sacrifice of the order of the debt exchange is upon us.

We should not get the required revenue only from one end of the spectrum; the tax on sugary drinks is described by the chairman of a large beverage producing companies, as possibly falling hardest on the ‘poorest of the poor’ . Family-controlled enterprises that report huge profits each quarter and only list a sprinkling of their shares to allow qualification to the Junior Market should step up and contribute to Jamaica, land we love!

PETER GRAHAM

pa.graham@gmail.com