DANNY ROBERTS, vice-president of the National Workers Union (NWU) and the Jamaica Confederation of Trade Unions (JCTU), is proposing that Government brings forward the next increase in the income tax thresold to October 1, 2005.
This, he says, will help to reduce the impact of rising prices on public sector employees and other Jamaicans.
The last increase was made on July 1 when the Government increased the income tax threshold to just over $169,104. Finance Minister, Dr. Omar Davies, said in April that the threshold will be moved to $193,440 in January 2006, and $275,000 in January 2007. Thereafter, the threshold will be indexed to inflation, as proposed by the Matalon Committee, a Jamaica Information Service report said.
Mr. Roberts said moving the increase forward will help to lighten the load being carried by the public, which is facing rising petrol prices, utility bills, bus fares in some cases and price increases for other goods and services.
Case in point, As of yesterday, commuters using the Jamaica Urban Transit Company (JUTC) buses began paying at least $20 more for bus fares. The new rates, which see persons paying a flat rate of $50, went into effect yesterday. The Government also increased fares on route taxis and hackney carriages. The JUTC is also to benefit from a price adjustment mechanism (to be designed by the Office of Utilities Regulation) which will govern future price increases. Although public sector workers are exempt from paying the new fare, the unions remain concerned, especially because rising fuel prices means consumers are paying more at the pumps for petrol. Customers of the Jamaica Public Service Company would pay more for electricity and news that water rates may go up in September.
Speaking with The Gleaner over the weekend, Mr. Roberts said the Government should also immediately abolish taxes on the laundry and uniform allowances of public sector employees to help them keep more of what they earn.
The Government taxes uniform allowances above $5,739 and laundry allowances above $3,359.
