The Editor, Sir:

Jamaicans everywhere are struggling to make ends meet and some resort to crime to feed themselves and food prices just keep rising. In fact, right now there is a worldwide food cost crisis. Generally speaking, the cost of food here in Jamaica is at least 20 per cent higher than in the US due entirely to the GCT.

I propose, that the Government eliminate the GCT for household consumers (not for restaurants and resorts) on all essential consumable food products such as flour, rice, meat, fish, poultry, fruit and vegetables, canned, frozen and packaged foods. A 16.5 per cent GCT on food when Jamaicans are struggling to feed themselves and their families is inexcusable.

Making up for the loss

The GCT on school uniforms, books and other essential educational products should also be eliminated. The loss of revenue to the Government can easily be made up by increasing the tax on all other non-essential food products, junk food, soda, energy drinks, vitamins, processed, packaged and non-essential foods, and especially tobacco, beer and hard liquor. This is the way it is in the US and it works very well.

The average Jamaican would have 16.5 per cent more money to spend on food or he/she can spend the extra money on non-essential products if he/she so chooses. The consumers who can afford non-essential food products can afford to pay the increased tax.

Any way you look at it, the money will end up back in the economy to fuel the economy.

A possible fight

I am sure most of the companies that produce non-essential food products will fight such a move, fearing a reduction in sales and profits. This will only demonstrate their greed and selfishness. Comparative situations in the US have actually resulted in an increase in sales to these companies, because the people who now buy non-essential food products can afford them and will continue to buy them, and those who do not buy non-essential food products because they can't afford them will begin to buy them because they now have more money to spend on food. If the elimination of the GCT were handled properly, it would actually increase tax revenue for the Government.

I am, etc.,

JAM BAK

takjambak@yahoo.com

Port Antonio, Portland