Senior member of the Jamaica Labour Party's communications task force Marlon Morgan makes a point while addressing a press briefing at the party's Belmont Road headquarters. (Photo: Joseph Wellington)
The Jamaica Labour Party (JLP) is rejecting as ill-advised and “a recipe for disaster” the reported policy indication by the People’s National Party (PNP) that it will impose a tax on imported food items should it form the next government.
According to media reports, Opposition Spokesman on Agriculture Dr Dayton Campbell reportedly told supporters at a PNP meeting that a tax on imported foods will be used to generate funds to develop the agriculture sector.
However, in a release on Wednesday evening, JLP spokesman Marlon Morgan said the proposal by Campbell is disturbing.
“The PNP’s indication that they will resort to massive taxation if they were to form the government, is yet another reminder and unmistakable sign that the PNP does not understand how to properly operate a free-market economy,” Morgan said.
“Applying a special tax on all imported food items into Jamaica would lead to an increase in the price of basic food items and will unduly burden the Jamaican people. Such taxes would not be absorbed by importers but, instead, would be passed on to consumers; with the poor likely to be the hardest hit as they expend a great proportion of their income on basic food items,” he continued. “The Jamaica Labour Party is dismissing in the strongest terms, the plan by the PNP to impose additional taxes on the Jamaican people as reckless, unconscionable, and ill-advised.”
Morgan added that Campbell’s articulation of the PNP’s taxation appears contrary to Jamaica’s legal obligations, as a signatory to the General Agreement on Tariffs and Trade (GATTs), which was replaced by the World Trade Organization (WTO) of which Jamaica is a member.
“To compound matters, Campbell’s suggestion of a widespread ban on importation of certain food items is also likely to drive up food prices and hurt Jamaican consumers given that there have historically been challenges in fully satisfying local demand for the agricultural products he referenced. Currently, Jamaica only imports to supplement local production,” Morgan said. “An argument may be proferred that Campbell is clearly speaking outside his area of competence, but the better view appears to be that the PNP’s tax plan, is consistent with the high taxation and inflationary policies which have been traditionally utilized by the PNP to devastating effect on Jamaican consumers.”
Arguing that the PNP in its last term in office had imposed approximately $60 billion in new taxes, Morgan said he is confident that Jamaicans will take note of the utterances of Campbell and also Opposition Spokesman on Education, Senator Damion Crawford who had proposed an increase in General Consumption Tax (GCT).
“It is clear the PNP has not changed its philosophy and intends to impose additional burdens on the people of Jamaica if they are given the opportunity to again lead this country. We reject their unconscionable, inflationary, anti-people and anti-free market economy policies. The Jamaica Labour Labour Party believes in policies which are likely to contain the cost of living, keep food prices within the reach of ordinary Jamaicans, and increase the purchasing power of consumers,” Morgan said.