Claudine Housen, Staff Reporter
RICKARDS
WESTERN BUREAU:
SUGAR INDUSTRY officials yesterday lambasted the government for what they say is an unfair implementation of the General Consumption Tax (GCT) between different sectors.
This comes in the wake of the recent announcement by Finance Minister Omar Davies that GCT will move from 15 per cent to 16.5 per cent starting May 1
"Last year the minister imposed a GCT (of) 15 per cent on agricultural machines, equipment and parts, including tyres. He took it off fertiliser upon representation but left it on equipment," Allan Rickards, chairman of the All Island Jamaica Cane Farmers Association (AIJCA) told The Gleaner yesterday. "Machinery and equipment represent over 50 per cent of our production cost."
'NO REGARD FOR AGRI SECTOR'
Mr. Rickards, who was speaking at an AIJCA meeting in Trelawny yesterday, conceded that tourism is important to the nation's income earning ability, but he said that the "government does not regard the agriculture sector with any importance or priority."
"Tourism was only paying half the GCT. The agriculture sector has been paying all of it and they (tourism) sector are likely to get relief." Minister Davies announced last week that the tourism sector would be required to pay GCT of 8.25 per cent.
"We thought we had a sympathetic hearing with the minister (last year) because we went to the minister about that (GCT rate) and land tax," Mr. Rickards continued.
"Instead of acceding to our wish to remove the 15 per cent, now we have to pay 16.5 per cent. Transportation is going to increase, which means that the harvesting cost will have to increase. They better tell us how they mean for this industry to continue," remarked an emotional Rickards.
According to Rickards, GCT is not the only area in which the agriculture industry gets shafted.
He said the farming sector has been demanding an agriculture development fund for nearly two years, without success. But he noted the tourism sector "asks for it and within six months they have their fund."
