OPPOSITION SPOKESMAN on Finance, Audley Shaw, on Tuesday recommended that the Government institute a housing allowance for the young working population in light of the proposed four per cent increase in tax on construction.
Arguing that finding suitable housing is one of the greatest problems being faced by young Jamaicans, Mr. Shaw said the housing allowance should take the form of a mortgage break in interest payments from PAYE. (pay as you earn) income.
"This tax increase of four per cent will see the cost of purchasing or renting a home increase," the shadow finance minister said.
WANTS CUT IN TRANSFER TAX
Mr. Shaw also recommended that Dr. Omar Davies, Minister of Finance and Planning, consider a proposal from the Joseph Matalon-led Tax Policy Review Committee that transfer tax be reduced from 7.5 per cent to five per cent and stamp duty be eliminated.
"This reduction/elimination of taxes will reduce the cost of transferring properties but, more importantly, increase the incidence of transactions and, as such, increase the Government's revenue take," Mr. Shaw said.
R.H.
