The Private Sector Organisation of Jamaica (PSOJ) said the 2007/2008 Budget will not provide the growth desperately needed by the economy at this time.

PSOJ President Chris Zacca noted that while cheaper credit to small businesses and entrepreneurs is welcome, there is very little else in the Budget that will spur the kind of growth needed to boost the economy. He said the lack of growth in the economy over several years was the cause of problems now besetting the society.

"What is needed today is a radical overhaul of the framework that businesses operate under in Jamaica," said Mr. Zacca.

He added that the PSOJ will be actively researching and lobbying for measures to increase the growth rate of the economy.

Among the measures the organisation is looking into is a significant overhaul of the tax system, which will include a reduction or removal of income tax in favour of more broad-based and simpler methods of revenue generation that can create less disincentives for compliance and encourage formal business development and entrepreneurship.

Additional taxpayers

"The PSOJ welcomes the announced redoubling of government efforts to bring additional taxpayers into the formal system and we strongly support measures to encourage such compliance," Mr. Zacca said. "We believe, however, that it is an overhaul and redirection of our tax system that will automatically increase the entry of the informal sector into the formal sector and thus spur business activity, fuel growth and encourage greater tax compliance."

He also noted that the PSOJ supports the announcement of the need for more resources for education and training and for increased social partnership.

"For Jamaica to compete in the global market, the growth that is necessary must be encouraged and the Government must put the necessary plans in place. The PSOJ stands ready to support the Government in initiatives that will realise this growth and development," he said.