Moontown

APRIL 16, 2005

The Jamaican Government yesterday  announced it will, in two tranches, lift the income tax threshold by more than $60 percent to J$193 440 this fiscal year, but will claw back far more than what will be given up by the treasury with 1.5 percentage point increase in the general consumption tax to 16.5 per cent.

In an initial stab at implementing the Matalon tax reforms, the Administration also announced a raft of other adjustments, which combined, will yield an estimated $9.3 billion to the Government’s coffers, dwarfing the J$1.42 billion it projects to forego.

A committee headed by the Jamaican entrepreneur Joseph M. Matalon, in February, had proposed a radical overhaul of the country’s tax arrangements, to shift the burden more to indirect forms of taxation and to make the system more investment-friendly.

The committee had favoured rapid implementation of its proposals, suggesting that this was likely to lead to the best results. But yesterday, the Jamaican Finance Minister Omar Davies, fearing that shock treatment would likely meet resistance and weakens his plan for a balanced budget by the end of the fiscal year, opted for a measured approach to reform. Matalon proposed a radical overhaul of the country’s tax arrangements.

:The Government proposes to implement the reforms on a phased basis over a four-year period in order to protect the revenue base, avoiding a jolt to the system  and perhaps more importantly to allow the tax administration time to adjust to the change needed to increase efficiency.” Davies said as he outlined to legislators how he plans to fund the Government‘s spending plan for this fiscal year. He last month tabled a budget of J$347.2 billion.

Yesterday, the finance minister said he had projected revenues from existing resources at J$196 billion and expected to borrow J$142.7 billion, including US$500 million on the foreign money markets. The additional J9.3 billion to be raised by the reform measures was about what was needed to close the gap.

Matalon had proposed that the current threshold before Jamaicans pay income tax – which now stands at $ 120 464 – should be hiked to J$275 184 and then be indexed to inflation. He also said that the GCT, a value-added tax that is currently at 15 per cent, should be lifted one percentage point to 16 per cent.

Instead, Davies has proposed to reach Matalon’s figure in January 2007, when future movements would be tagged to inflation. But in July, he would raise the current no-income tax barrier to J$169 104, a hike of 40.37 per cent, moving to J$193 440 from January 2006.

Matalon had suggested that tax allowances be removed, but Davies said that to compensate for the phasing, he would not remove some of the allowances now in place.  The minister also said effective July 1, pensioners under 65 will be allowed a tax-free income of J4214 104, while those over 65 will pay no tax on earnings of J$259 104 and under, moving to J$238 440 and J$283 440 respectively next January.

The raising of the income tax threshold will cost the Government J$1.4 billion and it will lose another J$200 million by removing from the list 6 900 companies, those that have a turn-over of under J$1 million per month.

However, Davies went half a percentage point above Matalon’s recommendation on the GCT rate, and the overall hike is expected to earn an additional J$5.36 billion. Plans to reduce the number of zero and exempt items – another Matalon’s proposal  - will earn another J$3.6 billion.

This will be topped up by another J$384 million with the removal of the GCT differential between building materials and other products. The GCT on building materials used to be 12.5 per cent. At the same time, the GCT applicable in hotels will move from 6.25 per cent to 8.35 per cent to maintain its application of 50 per cent of the standard rate. These measures will come into force on May 1.

Davies also announced a simplification of the transfer and property tax regimes, which he believes will together earn just over $500 million. In the future, death transfers will attract a tax of 7.5 per cent on the value of an estate above its first J$100 000.

In the case of property tax, bands have been removed and people will pay a flat rate of J$600 up to a threshold value of J$300 000. On additional value above that threshold a tax of0.5 per cent will apply. Davies also restructured the taxes on gaming operations, putting in place a gross profit tax, which is a tax on net sales after paying out to punters.

The rate for lotteries under this system is 29 per cent, while bookmakers will pay 20 per cent and government horse racing promotion company five per cent. This will bring it an incremental J$300 million, while higher taxes on cigarettes will earnJ$320 million.

Things seem to be going back on track for the Montserrat ferry dock project after financial issues brought it to a standstill sometime ago.

National Authorising Officer for the European Development Fund (EDF) within Antigua and Barbuda’s Ministry of Finance, Ambassador Clarence Henry told the AntiguaSun that the financial difficulties were linked to the technical study which, in keeping with the European procedures of the EDF, needed to be done first in order to assess the project’s cost. This issue has been resolved, according to Henry and the European Commission and CARIFORUM have secured funding by way of the Regional Technical Co-operation Program Facility.

“The Guyana delegation has launched the tender to select the consultant to conduct the technical study, which is really the hiring of an engineering firm to check the underwater piles at the Bryson’s pier in St. John’s to see if they are structurally sound, review the existing designs for the ferry docking facility, compilation of the Financing Agreement and Tender Dossier. It is expected that the consultant will be hired in a few weeks and commence his work shortly thereafter,” Henry said.

Once constructed, the dock will be divided in order to accommodate both the Montserrat and Barbuda ferries.

Although the dock is primarily being built to assist Montserratians in evacuating the island in the event that the Soufriere Hills Volcano should erupt, it is also hoped that business will be encouraged.

“It is expected, that the ferry terminal will stimulate and encourage the economic growth of Montserrat, especially for the cargo and tourism between both Antigua and that British dependency,” Henry said.

Accusations have surfaced that could lead one to believe that the outcome of the case involving the six United States (US) citizens accused of beating the police, had political interference in coming to its conclusion following a four-week trial.

At the end of the matter on Monday in the St. John’s Magistrates’ Court, five of the six tourists were convicted and fined close to $10,000.

In a statement, the office of Rep. Edolphus Towns said a plea agreement was reached last weekend and in exchange for the guilty pleas, officials promised a fine in lieu of jail time. Towns’ statement appeared in an article written by Jackie Jones on 6 Oct., 2009, and appearing on BlackAmericaWeb.com.

Reports are, the Antiguan Charge d’Affaire, an Antiguan ambassador and the prime minister were instrumental in these negotiations.

“According to (the) deal that Towns and (Jason) Caffetz helped broker, the deal called for the tourists to plead guilty to lesser charges and pay fines totalling nearly $3,600…I appreciate the co-operation of the Antiguan government and their efforts to work with me in creating an atmosphere to resolve this matter in a timely and fair manner…,” the statement said.

However, in a communiqué from the office of the prime minister, it was noted that while Prime Minister Baldwin Spencer did meet with the two US officials, it was made pellucid that the government could not impede the free course of the justice system.

“The office of the prime minister notes with interest an article written by Jackie Jones on 6 Oct., 2009, appearing on BlackAmericaWeb.com and which makes reference to Representatives Edolphus Towns and Jason Caffetz meeting with the Hon. Prime Minister W. Baldwin Spencer on the matter of six Brooklyn tourists who were on trial in Antigua and Barbuda. In the article, representative Towns was quoted as saying the following:

“I am pleased to report that after several productive conversations with the Antiguan Charge d’Affaire, the Antiguan Ambassador and the Antiguan Prime Minister, the six young Brooklynites are now released and will return home safely, Towns said in a statement.  I appreciate the co-operation of the Antiguan government and their efforts to work with me in creating an atmosphere to resolve this matter in a timely and fair manner. I also thank Rep. Chaffetz for supporting this important mission.

“The office of the prime minister wishes to state that although the Hon. prime minister did meet with the US representatives, it was made very clear from the onset that neither the prime minister nor his office could in any way interfere in the matter which was before the courts,” a press statement from the PM’s office said.

According to the release the government sought to ensure that the necessary amenities available to tourists were accorded to the six individuals concerned. Whatever arrangements were arrived at in the end, the release stated, solely involved the principals and their attorneys.

“Although it was in the government’s best interest that the matter is resolved in a timely and amicable manner, it made no attempt to interfere in the judicial process,” the release concluded.

Dolores Lalanne, 25, Mike Pierre Paul, 24, 25-year-old Joshua Jackson, 24-year-old Shoshonnah Henry and Nancy Lalanne, 22 were charged with battery, wounding, malicious damage and making use of indecent language among others.

Twenty-seven-year-old Rachael Henry had the battery charge against her dropped after a plea bargain was greed to.

Reports are the US citizens all from Brooklyn, New York, refused to pay taxi operator, Joey “Hungry Bird” Medica, an alleged agreed sum of US$50 after he took them on a tour to Jolly Harbour. The operator picked up the visitors from Heritage Quay after they disembarked a cruise vessel-the Carnival Victory. Reports are Medica after driving them (the tourists) back to St. John’s demanded US$100, but the tourists did not want to pay that sum.

It is alleged the taxi operator then drove the visitors to the police station where the confrontation with the lawmen took place.

“I am the comeback kid!” So declared leader of the Antigua Labour Party (ALP) and former prime minister of Antigua and Barbuda Lester Bird as he stepped onto the podium at the St. John’s Grounds to the tune We voting Labour to address participants in attendance at yesterday’s White March.

However, Bird this time promised that in keeping with his moniker, when he returns, he will not leave again. The veteran politician was the first from the opposition’s camp to address the gathering, which, according to unofficial estimations, closely rivalled the numbers of the initial White March of several weeks ago.

In declaring to the people that there is much to do to get the country back on track, Bird expounded that it is now a life and death situation for the people of Antigua and Barbuda.

“You understand that unless we get together and we decide to confront this government, they are going to continue just to sit there in power with their nine seats and to continue to rip off this country.

But we will not allow it to happen,” the opposition leader said.

“I have given nearly 30, 40 years of my life in politics in this country; but that is just a short time. Because I will give another 40 years if that’s what it takes to remove the UPP from power.” The non-nationals also came in for commendation as it relates to their purported resilience, with Bird saying, “As far as I am concerned, you are part of the fabric of this society. You have helped to build this; don’t let them run you.”

He added that the march is indicative of the movement of the masses of this country and as he continued on a platform of taking back the country, Bird invoked the name and accomplishments of his father Sir V C Bird, Snr.

“We have the spirit of V C Bird; and I want to say to them we want back V C Bird Day! He’s the icon; he’s the man that built this nation.”

In extending his platform, Bird underscored to the audience that the crimes must stop and the standard of living must be returned to that of yester year. The former prime minister revealed that a mini convention will soon take place, in an effort to, according to him, bring some realisation to the UPP government that they have nothing to offer this country

“Let us go back. We have the institutional knowledge; by that I mean we have experience. We know how to run this country. We’re going to show them that the governance of this country can be run notwithstanding the talk about this global problem. The important thing is we understand where to turn the switch.

“The days are now over. The people have begun to speak. You’re not just doing this for Lester Bird. I’m in the twilight of my career, but you are rising like a phoenix from the ashes of this nation that they are trying to destroy. And you’re going to build once again the wonderful Antigua and Barbuda,” Bird said.

Also speaking at the rally was the ALP’s Deputy Political leader and Chairman, Gaston Browne, the Organisation for National Development’s (OND) Melford Nicholas, MP for St. John’s Rural South Eustace “Teco” Lake, Senator Gail Christian and Samantha Marshall, among others.

CREOLE RICE; MACARONI PIE

MASHED POTATOES; GRILLED DOLPHIN

FRIED KING FISH; FRIED SNAPPER

BAKED PORK; BAKED CHICKEN

BBQ PIG TAILS; STEAMED VEGETABLES

FISH GRAVY; BEEF STEW

TOSSED SALAD; PICKLED GREEN BANANAS