EDWARD SEAGA, the Opposition Leader, wrote to Prime Minister P.J. Patterson yesterday seeking an assurance that the Taxation Committee of the House of Representatives will debate the recently announced tax measures, and allow specific interest groups to make an input, before they are implemented.
In his letter to Mr. Patterson, Mr. Seaga said:
"I am deeply concerned that there is no agreement for a meeting of the Committee on Taxation Measures to convene on a specific date, which would allow for discussion before the tax measures take effect.
"There is deepening public concern that there are elements in the tax measures which are fraught with dangerous consequences to the economy.
SEVERE REPERCUSSIONS LOOM
"The imposition of a 15 per cent tax rate on 107 categories of goods and services, under the GCT Act includes pharmaceuticals which will be priced out of range of the needy; agricultural inputs to fertilise plants, protect crops from disease and provide feed for animals; increased insurance costs on life and health policies, as well as public transportation, among other areas of vulnerability in the economy.
"The proposed cess will have severe repercussions across the full range of thousands of commodities, particularly in the distribution and sale of food and drinks, the agricultural sector, tourism, the fledgling information technology and vital manufacturing industries, and all other areas which operate on narrow profit margins which will be wiped out by a four per cent tax imposition.
"The Opposition seeks your assurance that the Taxation Committee will have the opportunity to deliberate in depth on certain sensitive areas of the tax measures and to allow specific interest groups to make their input. The intention would be to hold these discussions promptly, so as not to cause any unnecessary delay while enabling useful proposals to be made which can offset and mitigate severe damage to the economy.
"This is a matter which the Opposition Leader considers to be of the greatest importance and urgency."
