IDB Expert Proposes Funding Pension Schemes through Consumption Taxes

Vice President for Sector and Knowledge at the IDB, Dr. Santiago Levy has a bold suggestion to plug gaps in pension coverage for Jamaicans.

He’s proposing pension schemes be paid for through consumption taxes.

The suggestion is important in a country where under 20 percent of Jamaicans are covered under a pension scheme. He says current social insurance schemes do not benefit people who are self-employed or operating under less formal contractual obligations.

Dr Levy is also suggesting the usage of unemployment insurance paid by the company rather than the usage of redundancy payments.

Dr. Santiago Levy was speaking yesterday at a forum sponsored by the Caribbean Policy Research Institute, CAPRI. It was held at the Spanish Court Hotel in St. Andrew.