THE EDITOR, Sir:
THE GOVERNMENT'S latest proposal to implement a tax on gasolene would appear to be a policy of desperation. Given the shortfall in projected revenues for the current fiscal year, which is drawing to a close, the Government needs to find a way to fill the escalating budget deficit. The dream of the balanced budget has already been shattered. However, the Government needs revenue, and needs it fast. A gas tax is, however, not the answer. Given the sensitivity of the situation, and one that has been tried on two previous occasions, it needs to be explored thoroughly.
It is clear to everyone that gas prices have increased and are likely to increase further. As a result, there needs to be greater efficiency and conservation. A tax cannot be the only way to achieve this. The population's response to the Government's recent increase in General Consumption Tax should have been enough evidence that the economy has reached its tax threshold. The staggering economy cannot withstand another contractionary fiscal policy.
In light of the performance of the economy over the past 15 years, with zero or stagnant growth, it is clear that the Minister of Finance doesn't possess the requisite skills to generate growth in the economy. The economy needs growth or expansionary polices at this time. Only then will the Government be able to generate further revenue without crippling the economy. Increasing the tax burdens of a country where there is no economic growth or any real returns to the citizens, cannot be a progressive policy.
A gas tax may be the last straw that breaks the camel's back.
I am, etc.,
KEMMEHI LOZER
k_lozer@yahoo.com
35 Garfield Avenue
Kingston 20
