By Vernon Daley, Parliamentary Reporter
Edward Seaga, the JLP leader, making his contribution to the 2003/04 Budget Debate in the House of Representatives yesterday. - Norman Grindley /Staff Photographer
EDWARD SEAGA, leader of the opposition Jamaica Labour Party, warned yesterday that his party intends to fight the Government on its decision to charge General Consumption Tax (GCT) on several additional goods and services.
Making his contribution to the 2003/04 Budget Debate in the House of Representatives, he launched a searing attack on the new tax measures announced last week by Dr. Omar Davies, Finance and Planning Minister, saying they would severely squeeze already burdened taxpayers.
OBJECTING
He said the JLP members on the taxation committee of the House would be objecting to several of the measures, especially the broadening of the GCT net to certain goods and services.
"I give notice that we intend to fight many of these matters in that committee," the Opposition Leader said. "While we sympathise with this minister in terms of the necessity to find new revenue, we must say to him that you can't impose a 15 per cent revenue assessment in one lick."
The taxation committee of the House was set up recently following a recommendation by the Peter Moses-led committee which looked at ways to improve government following the so-called gas riots in 1999.
Dr. Peter Phillips, Leader of Government Business, told The Gleaner yesterday that he was in discussion with the JLP and a date would be set for the meeting of the committee following the conclusion of the Budget Debate on April 30.
In his 95-minute presentation, Mr. Seaga argued that charging GCT on certain agricultural inputs and pharmaceutical drugs would harm the already struggling farming sector and make it very difficult for some people to afford basic medication.
Under the new tax plan,
brand-name drugs would attract GCT but generic drugs would continue to be exempt. However, with brand-name drugs accounting for about 60 per cent of the available local supply of medicine, Mr. Seaga argued that the impact would still be devastating.
He complained also about the imposition of GCT on certain medical aids such as canes, crutches, eyeglasses and contact lenses.
"The minister says he is sparing the poor but the package contains the things that the poor needs," he said.
Mr. Seaga said the opposition would be opposing other tax proposals including the four per cent cess on imports to the island. The government says the cess is merely a credit against income tax payments. However, Mr. Seaga contended that the measure would add pressure to some marginal companies and could possibly force them to close.
Dr. Davies last week announced a raft of tax measures aimed at raking in $13.8 billion in additional revenues. The cess will bring in about $3.4 billion while the elimination of exemptions and zero-rated items under the GCT should yield another $8.17 billion. The measures are set to become effective May 1.
Last week the House named nine members to the taxation committee. They are Government members Dr. Davies (chairman), Dr. Phillips, Dr. Paul Robertson, Donald Buchanan, Fitz Jackson and Dr. Morais Guy. The Opposition members are Audley Shaw, Abe Dabdoub and Rudyard Spencer.
