Arthur Hall, Senior Staff Reporter

The Opposition People's National Party (PNP) is not impressed with the tax adjustments announced by Prime Minister Bruce Golding on Wednesday. The party has not ruled out further protest action.

The PNP took to the streets last Wednesday with six demonstrations against the initial tax package and warned that more protest would come if major changes were not made.

On Wednesday, Golding said, having heard the cries of the people, the Government decided to scrap the idea to impose general consumption tax (GCT) on several basic food items, while introducing measures to tax luxury items, such as jewellery, television sets exceeding 32 inches, and jet skis.

But PNP Chairman Robert Pickersgill told The Sunday Gleaner that the changes would not determine the next step of the Opposition.

"We rule out nothing. We will continue to analyse the prime minister's announcement and decide on our next course," Pickersgill said.

"There was a suggestion on the table for a vigil on New Year's Eve and that has not been taken off the table," added Pickersgill.

He said the Opposition would announce its course of action this week after its technical team completed its assessment of the changes announced by Golding.

Economic framework

That echoed an initial response from PNP president Portia Simpson Miller, who said Golding had not gone far enough to establish equity in tax administration.

"Notwithstanding the reversal of the obviously ill-conceived elements of last week's tax package, this new announcement still has not provided an economic framework within which the decisions were made," Simpson Miller said

She argued that the prime minister did not provide the targets, standard data or parameters that should accompany a tax package.

"The vague references made by Mr Golding to requirements of an IMF agreement do not satisfy the country's right to know the details of the agreement. This is the fourth tax package in eight months that has been presented in a vacuum and without consultation," Simpson Miller added.

She charged that Golding's presentation did not address the reduction in purchasing power that the measures would bring to the working and middle classes, which are still being forced to pay the major part of the taxation package.

"The Opposition still does not accept the reasoning behind the Government's rejection of the increase in tax on interest. In addition, no element of the productive sector was provided with any incentive for growth and expansion, a critical prerequisite to empower the productive sector."

The opposition leader continued to question "the appropriateness, legitimacy and procedure in effecting revenue matters through national broadcasts and/or press releases".

Simpson Miller was supported by the PNP's Women's Movement, which accused the Government of continuing "to take the Jamaican people for fools".

Jennifer Edwards, president of the women's movement, said the announcement by the prime minister was nothing but feel-good measures, designed to make the population believe that he had "heard their cries".

According to Edwards, "While removing some items from the December 17 list, the Government will still extract over $15 billion in taxes from the pockets of the poor, low- and middle-income earners by way of the increased GCT, tax on petroleum, SCT tax, and tax on electricity for residential customers."

Higher prices

Edwards expressed concern that the taxes which remain, and some of those introduced, would result in higher prices to the consumers, as production and transportation costs increased.

In the meantime, the PNP Youth Organisation (PNPYO) said while it was pleased that the prime minister took on, in full or in part, three of its tax proposals, it was still not satisfied with the package.

Damion Crawford, president of the PNPYO, pointed to its proposals to increase the cost of motor-vehicle licensing, increasing the taxes on luxury items, such as televisions and washing machines, and increased efforts to capture GCT cheats, as some adopted by the Government.

"We believe that the planned approach proposed by the prime minister to catch GCT cheats through an advanced-payment scheme is very creative and should be applauded," Crawford said.

However, the PNPYO did not accept that the changes announced by Golding made the tax measures sufficiently equitable.

"Indeed, we are still very much against the increase in GCT rates, the GCT on electricity, and the increase in the gas tax, as these will only be cause for a sustained increase in prices," said Crawford.