Many remember the IMF regimes in the 70's, a time when I was a mere baby. This time around, it seems that Jamaica does not have a choice. With bauxite and remittances dried up, the JLP seems to find its hands tied. All the economists and skeptics seem to have ran out of ideas. Unfortunately, it is never enough to criticize without solutions. With the recession at hand, tax collection seem to have suffered a huge blow. Bearing it mind that tax collection helps to pay teachers, civil servants, police, etc. With the short fall in collection, mainly due to persons being unemployed, and the continuous problem of tax evasion, the Government finds itself n a bind. The Prime Minister has stated that the term of the loans will be about 24 months, but that is an estimate, as no-one really knows when this recession will be over. It was heartening to see that the IRS will be reviewing the Tax System in Jamaica, as tax evasion has resulted in heavy short falls over the years. In my mind though, the major issue with the tax system is that the law has no teeth, it is time that people who evade taxes are sent to prison, along with a fine. There is no point allowing a person to pay a fine, and then be able to continue in business, that is just crazy. For people to take the system serious, there must be severe punishment for evasion. It is great what Mr. Danville Walker is doing at Customs, and it is a pity there are more of his calibre in leadership. His no non-sense approach needs to be adopted by the Tax Departments across the board for any real change to take place. It is time that the Government review all the systems and make drastic changes. After the recession, it cannot be business as usual. My hope is that the IMF will insist on several changes to our tax system and the monitoring of corruption. The issue of crime is for another time, that is a monster that seems untameable at this time....IMF here we come....
0 comments:
Post a Comment