By Lynford Simpson, Parliamentary Reporter
DR. OMAR Davies, Finance and Planning Minister, on Tuesday, December 17, 2002, announced the Government's intention to raise $205 million in new taxes to help close a gaping hole in the national Budget.
Of that amount, more than $130 million or 64 per cent will come from motorists who will be required to fork out significantly more for motor vehicle licences, motor vehicle examination fees and increased traffic fines.
A breakdown of the figures shows the Government intending to raise $86 million from motor vehicle licences; $29 million from the doubling of examination fees from $750 to $1,500 and $16 million from increased fines for traffic breaches.
Strapped for cash, a close to bankrupt Government has literally thrown the book at motorists. The choice for motorists, therefore, is to either pay the increased fees or park their vehicles. Not much of a choice I guess. Is this highway robbery or what?
The Government perhaps holds to the view that there is nowhere for motorists to run, no escape. But, how much more can a people, regarded as one of the most taxed in the world, bear? How much more will motorists take?
And what of the Budget that will be presented in April? Dr. Davies, when he tabled the First Supplementary Estimates in the House of Representatives last month, jacking up the Budget by $13.5 billion to $223.5 billion, did not state where more than $12 billion will be sourced. It seems a fresh round of taxes is just ahead. This, after the Government had insisted last April that it had not presented an election Budget. By so doing, it fooled the populace into thinking all was well ahead of the October 16 general election which it won, albeit with a drastically reduced majority. This is deception of the highest order.
Another question that needs to be answered is: how much of the State's resources were squandered in the run-up to the general election? It seemed contracts were being handed out all over the place and money was not a scarce commodity. The countryside was reportedly awash with 'Nannys' ($500 bills) and 'Manleys' ($1,000 bills) in the weeks leading up to the polls. It appears, however, that the cash cow has ran out of dough and Dr. Davies is left with no choice but to stick up the all too consenting motorist once again.
By now, Jamaican motorists must feel targeted, that they are under siege from a Government that has shown it has not quite figured out how to manage an economy after 14 years. So, when taxes need to be raised, first thought is given to squeezing motor vehicle owners.
It appears the problem is really one of governance. Take the aborted attempt last year to increase property taxes, in some instances by more than 1,000 per cent. Well thinking Jamaicans will agree that ridiculously low amounts are still being paid for some properties. Whose fault is it, however, when, with the law allowing for an adjustment in rates every five years, the Government, critically short of revenue, allowed 10 years to go by then attempted to play catch up by proposing to increase the rates beyond what many people, including pensioners, could afford.
TRAFFIC FINES
Back to traffic fines. For those who argue that such fines need to be prohibitive to prevent the recklessness that leads to the carnage on our nation's streets, I agree with you. I agree with you too, if you argue that motorists should contribute to the maintenance of the road network. If the increased fines were mainly for these two reasons, I would give my 100 per cent support. There is no indication, however, that these are the reasons why the fines have been increased. Rather, it appears the Govern-ment is desperate for cash and without conscience, has resorted to pressuring those who are among the many who voted to return it to office in the first place.
EMISSIONS
On the matter of a $4,000 fine for permitting escape of an unreasonable amount of smoke from one's vehicle, the police who will be prosecuting, should first remove from the streets those vehicles they drive around in and which leave everyone driving behind them in a cloud of smoke. I hardly have a problem with the fines for speeding and improper overtaking which police statistics show are responsible for a large number of the fatal accidents on our streets.
But, while I detest the manner in which seemingly most taxi operators and mini bus drivers operate, there are some who, having been laid off from jobs in an economy that has remained stagnant for the better part of a decade, are honestly trying to make a decent living. What about providing them with the requisite licence and whatever else they need before imposing a fine of up to $20,000 on persons deemed to be operating contrary to the terms of their licence?
That this (the $20,000 fine) is aimed at this category of drivers is obvious, hence rumours of a planned strike in Montego Bay, St. James, today. Such a strike would be unfortunate in the tourism capital, especially at a time when industry players say the sector is on the rebound. While I urge those considering such a strike to reconsider in the interest of country, I also urge the Government to reconsider its latest tax move. I doubt, however, that in the case of the taxi operators any stepped up effort will be made to grant them the road licences they need to legitimise their operations. Why do so now when you are about to make a killing off them?
On the matter of driving a defective vehicle, these too lead to accidents and should be removed from the streets. But, what about the police officer who ticketed a lady for driving with one headlight after she explained to him that she lost the light after hitting a pothole, blowing a tyre in the process. Instead of a $7,500 fine, what about a warning for first offence, or the impounding of the vehicle if it is found to be in such condition it poses a danger to both driver and other users of the road.
It is my view that it would have been more reasonable to increase the motor vehicle examination fee to $1,000 or even $1,200. We could argue that the examination depots have to be maintained and staff paid. However, a 100 per cent increase to $1,500 in a stagnating economy, is asking too much of some people. And some persons will be paying significantly more to have their vehicles licensed. Too much, in some instances, if you ask me.
It is likely that the police will be working overtime removing from the streets, unlicensed motor vehicles as well as those operating without certificates of fitness. I urge the authorities to make more space at the pounds.
For those who have not yet figured it out, here is the complete scenario. Government has increased motor vehicle licensing fees, examination fee and traffic fines while the threat of a war in the Gulf has, for some time, been pushing up fuel prices on a weekly basis.
Then there is the possibility of already corrupt police officers being corrupted further. Since many persons who run afoul of the law will not be able to pay the increased fines, many will resort to bribe an all too willing and underpaid cop.
On the matter of underpaid cops, was any thought given to the fact that while the Government attempts to raise $205 million in taxes, the salary increases it has granted Members of Parliament and Councillors is costing much more than that? Speak of setting a bad example. I know of no business that is not making a profit where the owner pays him/herself a salary. And to take an increase at that.
CURBING BAD DRIVING
It would be amiss of me to end this piece without suggesting some ways of curbing the bad driving habits that lead to hundreds of road deaths each year.
- Begin by getting rid of corrupt examiners whose first order of business
is not whether you can drive or read, but whether you can pay for the licence.
- Revoke the licences of persons deemed to be illiterate.
- Permanently seize taxis and minibuses whose drivers continue to flout the
law (I hear legislation is being drafted in this regard).
- Increase and maintain the police presence on roads and in so-called black
spot areas where most fatal accidents take place and where it is known motorists
disregard the rules of the road.
Email your comments to lsimpson@gleanerjm.com.
