As the PNP recovers from the euphoria of beating the JLP by a landslide, Jamaica’s problems remain. Based on my observation of the situation, I would like to make one suggestion that I think would help Jamaica to get out of their current predicament.

The solution I recommend is fairly easy to enact in a short time. My solution is to remove the Income Tax from PAYE and Companies and increase the GCT rate. The rate of increase that I am suggesting is 40% across the board for GCT. Some may say that this will gravely affect the poor, but I have a solution for that as well.

My belief is that everyone should have a TRN from birth. Added to that, those who do not have a TRN should be registered and placed into the tax database. What is the point of doing that? Firstly, this would ensure that all citizens are recognizable by one unique number. Secondly and most important, I believe that if Income Tax is eliminated then all Jamaicans who earn an income should file annual tax returns. 

If all Jamaicans file their annual returns then those who fall below the poverty level can be given tax credits based on the GCT they had to pay for goods and services. This makes the system equitable for all.
The problem is that right now half of the population is not paying their taxes, which puts the burden on the PAYE and some large corporations to run the country. With this idea the government would be able to fill its coffers and meet its internal obligations. This would leave excess money to pay for education, security and health. There would also be funds available for infrastructure development and debt repayment.

This increase could be done in a short space of time. The staff that is currently employed in income tax would easily be transferable to GCT to strengthen the enforcement side. Added to this, persons working as taxis, bus operators and other person who require licenses to operate, should not be given a license to operate unless they have filed their tax return.
The tax database would have to be set up in a way to indicate to the authorities when annual returns that are due have not been filed, and the necessary action taken to collect those taxes.

The fact of the matter is that people have to consume goods and services to live, whether you are a business/individual, so it makes sense to increase the GCT rate to capture all. There should be no exemptions or waivers provided to anyone under such a system. Currently you may have two businesses side by side and only one is paying taxes. This would remove that inequity and make it a pleasure for people to be tax complaint. Jamaica needs to recognize that our culture is not like the US or Canada, and the same measures that work in those countries will not work there.

It is time that we take positive steps to curb the issues that we face and this solution can have an immediate effect on increasing revenue for the country, and will also provide employment as overseas investors would be willing to invest in a more regulated and fair system.