The Government is reportedly considering using National Housing Trust (NHT) funds for budgetary support, and Dennis Chung, chief executive officer, Private Sector Organisation of Jamaica (PSOJ), said doing that would reduce taxes to be imposed for the upcoming fiscal year.
In 2013, the Portia Simpson Miller administration amended the law to take $45.6 billion from NHT over four years for fiscal support under a four-year deal with the International Monetary Fund (IMF). That deal was replaced last year with a three-year standby one.
Andrew Holness, while opposition leader, criticised the decision, and his Jamaica Labour Party threatened court action to test its legality. He also said alternative funding could have been found.
Now he is prime minister and his administration is looking for at least $27.4 billion in additional revenue for the next fiscal year. That amount includes $16 billion for Phase Two of the income tax giveback and $11.4 billion to replace the NHT’s support. Additional money will also be needed for wages and salaries.
Chung said the Government should do what is “practical” and continue with the NHT to reduce the amount to come through taxes.
Leave A Comment