CAPRI Head Recommends Gov’t Moves to Indirect Taxation

Executive director of the Caribbean Policy Research Institute, CAPRI, Dr. Damien King, says the government must realign the country’s revenue base to indirect taxation.

He’s also calling for the government to move away from using tax incentives to drive economic growth.

He made recommendations as part of CAPRI’s budget break down analysis on Thursday.

Chevon Campbell tells us more.

According to CAPRI, with only fifteen percent of the country’s labour force currently paying Income Tax, the measure represents an uneven levy on a select group of Jamaicans.

However, more concerning according to Dr. King, is the growing reliance on the measure to fund the government.

As of 2025, 31 percent of the government’s revenues currently come from income and profit taxation.

This is up from 24 percent in 2021.

It stands in direct contrast to the government’s previously stated policy of shifting toward indirect taxation.

Dr. King says action must be taken to correct this trend.

Meanwhile, Dr. King says the continued use of tax breaks as an incentive is also a bad move.

Meanwhile, the CAPRI head is urging the government to continue investing in macroeconomic stability as the country enters a period of global economic uncertainty.

The primary concerns this year include potential supply chain disruptions, inflationary pressures from foreign policy shifts in key trading partners, and Jamaica’s continued exposure to natural disasters.

On Wednesday, US President Donald Trump announced a slate of sweeping tariffs. The tariffs range from 10 to 49 per cent on nearly 60 countries around the world.

Jamaica is among those affected, with 10 per cent tariffs set to be applied on all goods exported to the US.

Dr. King says Jamaica can only survive a volatile global economic world if the country continues to invest in its own macroeconomic stability.

Dr. Damien King, executive director of CAPRI, speaking on Nationwide This Morning on Friday.