Unjust New Tax

The nation was in uproar last week as Finance Minister Dr. Peter Philips made an announcement that would most certainly not have been treated as welcome news by a long shot, effective June 1 all withdrawals from financial institutions will now attract taxes particularly transactions at the ATM, according to the minister this new measure was concocted by the government in order plug what they describe as a gap in the budget and is expected to rake in JMD $6.7 million.

                     

Naturally as one would expect there was a major public outcry at this new tax imposition from all sectors of society given the harsh economic climate and extended depression currently facing the country, everyone from the parliamentary opposition to the private sector and civil society and even the churches have all come out swinging at this most unjust imposition and rightly so.  People everywhere are calling on the government to reconsider its position before it’s too late and given the already negative perception about the government being thieves and their ineptitude in managing resources, it is truly saddening that this government would take such action at a time when unemployment is at an all-time high even and especially among tertiary graduates while economic prosperity is low as is morale. This administration came to power promising improvements in the economy but all they really did is make things worse. People are already suffering enough as it is without this newest measure that only serves to add insult to injury.

            

As many persons have already rightly acknowledged scheme is little more than robbery on the government’s part, persons have placed their money in banks for safekeeping bearing in mind that the bank itself also has it’s own bank charges which in itself as already a sticking point for many and now the government seeks to drive a nail in the coffin of the Jamaican economy because now many people and particularly businesses will try as best as possible to refrain from or limit their dealings with the banks and what’s worst those who can afford to will even place their money in overseas banks and that will most certainly not be good for the local banking sector.During the economic recession of the last decade, banks in many country collapsed, went under and had to eventually be bailed out by their governments. No such thing happened in Jamaica because the then JLP administration put in place mechanisms to ensure that our banks stayed afloat. But then came the general elections of 2011 and the ushering of the PNP into power, since that time our economy worsened more than ever before, our dollar skyrocketed as did unemployment and now comes  the government  who seem relentlessly  intent on destroying our banking system and the livelihood of the local populace with it.

What about “giving to Caesar his due?” an ignorant few may ask, ”doesn't the government need taxes to run the country” , anybody who is thinking clearly will know that what a person places in his or her  bank account is actually their disposable income, what they have left over after the government has already taken their due which includes P.A.Y.E., NHT, Education Tax and the like,  that is where the new taxes is coming from, so in essence this is basically like a man going for a second helping of dinner when he has already has his meal, can you see how unjust this truly is?

                 

This government is once again displaying that it truly does not have a clue as to how to manage the nation’s economy, I have said it before and will repeat, fiscal prudence and conservatism is the only way out if Jamaica’s economy is to improve, this new tax measure is neither conservative nor prudent.  There is discontent everywhere with many of those who voted to put this administration into office now regretting their choice, there is not much more that people can take and already there are talks of strikes, protests and some have even suggested a revolution to overthrow these circus clowns who are really a sorry excuse for a government, this will not end well  if things continue on this path, but all is not lost, seeing as  the date announced for the collection of this latest tax has not yet arrived, the budget debate is not yet over, there is still time to repeal this draconian measure. This government claim to rule based on people power and the “will of the people”, therefore it would be wise for them to listen to the people now and withdraw the tax before it is too late