The IMF has given the government’s income tax initiative a ringing endorsement!
The fund has described the move away from direct to indirect taxation as a bold and essential step.
The Government has faced fierce criticism from the Opposition for the 14-billion dollar tax package and the phased introduction of the tax break.
Addressing a joint media briefing at the Ministry of Finance Heroes Circle’s offices this afternoon – IMF Mission Chief to Jamaica, Dr. Uma Ramakrishnan, described the phased income tax initiative as bold and essential.
The IMF’s resounding endorsement could not have come at a better time for the Holness Administration.
During the budget debate underway in Parliament, former Finance Minister Dr. Peter Phillips and Opposition Leader Portia Simpson-Miller criticized the administration’s income tax initiative.
Our news center asked Dr. Ramakrishnan whether there are any lingering concerns by the IMF about the income tax break and the 14-billion dollar tax package.
Dr. Ramakrishnan noted that the IMF has long been advocating for a move away from direct taxation.
She says the Washington-based multilateral and Finance Minister Audley Shaw have been working closely to ensure a seamless implementation of the tax break initiative.