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Finance Minister, Fayval Williams, says the PNP’s pledge to increase the country’s income tax threshold to $3.5 million, would require significant cuts in government programmes and growth in the Jamaican economy not seen in recent history.
She’s again condemning the promise as reckless and irresponsible.
Mrs. Williams was addressing a JLP media briefing on Wednesday at the party’s Belmont Road headquarters in St. Andrew.
Chevon Campbell tells us more.
For the second time in as many days, Fayval Williams held condemned the PNP for the income tax threshold promise.
She says the proposal is a recipe for damaging the economy.
The Minister provided economic models to back her position.
She says to implement a $3.5 million threshold would cost upwards of 80 billion dollars.
Opposition Spokesman on Finance, Julian Robinson, has suggested his party will harness the expected $140 billion of projected revenue growth over the next three financial years as a means to comfortably implements its plans.
But, Minister Williams says this belief is a poorly thought out fantasy, that ignores key data in the Fiscal Policy Paper.
Nationwide’s own checks show the country running a deficit over the next three financial years.
That’s $34 billion in year one, 33 billion in year two and nearly 6 billion in year three.
Mrs. Williams also dismissed the PNP’s claims that increased growth would cover the expenditure.
If the Finance Minister’s estimates are accurate, Jamaica would need to generate nearly six times it’s current GDP growth to fulfil the PNP’s proposed threshold increase.
That would be four times the current Caribbean average.
Meanwhile, Minister Williams, says the JLP will not stop increasing the income tax threshold once it reaches the promised $2 million mark.
She sought to assure Jamaicans that further increases will be possible once fiscal prudence allows.
Minister Williams says Jamaicans can trust the word of the JLP based on its record.
Fayval Williams, Minister of Finance and the Public Service.
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