By John Myers Jr., Staff ReporterFACED WITH an already sluggish construction industry, the Master Builders Association of Jamaica (MBAJ) has expressed concern that new tax measures announced in this year's budget will hinder growth in the productive sector.
"It (the new tax measures) does not help the productive sector," said Donald Mullings, President of the MBAJ, in analysing the budget presented by Finance and Planning Minister Dr. Omar Davies.
"While you can see these pressures (new taxes), you cannot see where the budget is contributing to increasing employment in fact, it will do just the opposite, it will reduce employment," Mr. Mullings said.
He explained that with these additional taxes on an already burdened productive sector, more businesses will find it difficult to operate, which will impact negatively on employment.
In the construction industry, Mr. Mullings noted that the imposition of taxes on imported raw materials will cause the cost of production to increase by as much as two per cent.
"Any increase (whether) one or two per cent, is undesirable at this time as this will have a negative impact on the industry," Mr. Mullings said. And with less opportunity for employment, "there will be less people to buy your housing."
The MBAJ President asserted that the Government's failure to cut expenditure was largely responsible for the current difficulties, especially the high debt situation. He charged that it was unfair for the Government to be calling on taxpayers to bear the brunt of the burden while it continues to spend extravagantly.
Said Mr. Mullings: "The productive sector is shrinking ...and this is really where we should worry about the effect on the poor, they will get no new jobs."
