By Lynford Simpson, News EditorGOVERNMENT MEMBERS in the House of Representatives were made to sweat yesterday as the report of the Tax Measures Committee, which recommended a rollback of General Consumption Tax (GCT) on a range of goods and services, was approved by just one vote.
This, as the opposition Jamaica Labour Party (JLP) beseeched the Government to offer further concessions particularly in the area of health insurance and the gaming sector.
The report was approved after the JLP called for a divide vote. Twelve members were absent, including Andrew Gallimore, the JLP MP for St. Andrew West Rural. He was tied down in his constituency following a triple murder in the Temple Hall area.
Dr. Omar Davies, Finance and Planning Minister who opened the debate two weeks ago, had said the Government was not prepared to offer further concessions as it still had a budget deficit to close.
Yesterday he told the House that the 15 per cent GCT on newspapers would not be rolled back even after Delroy Chuck, opposition MP, pointed out that newspaper sales had dropped significantly since the imposition of the tax in May.
NEWSPAPER TAX STAYS
For clarification, Dr. Davies said: "There is no tax on books and magazines etc., that has been changed (but) the tax on the price of local newspapers remains."
Also, the tax on legal fees for criminal matters will remain, although the opposition and some legal experts charge that it is unconstitutional. GCT will not apply to legal aid cases.
Dr. Davies said he was not prepared to remove the tax from the gaming sector. However, he said he was prepared to review the matter overtime as both the Jamaica Lottery Company and Supreme Ventures Ltd. have complained of a significant drop in sales since the imposition of the tax on winnings.
That took effect on September 1 and, according to the Finance Minister, it was "too early" to make a determination about the effect of the tax on the industry. He said he will be examining the September figures which were now in his possession. Mr. Chuck asked the Government to consider a threshold of $1 million at which lottery winnings are taxed.
PUBLIC EDUCATION CAMPAIGN
In his contribution to the debate Karl Samuda, opposition MP, urged the Government to conduct a public education campaign on the importance of taxation. He also called for a removal of the two per cent tax on imports. To close the budget deficit, Mr. Samuda recommended a trimming of Government which he said was "too big and too costly."
The Tax Measures Committee examined the 2003/04 Budget which was presented by Dr. Davies in April. Of the $14 billion in new taxes announced in the budget, the bulk should come from GCT.
