The Co-Chairman of the Economic Programme Oversight Committee, EPOC Richard Byles, says a concrete plan must be outlined to make-up for the shortfall in revenue that Jamaica will lose from the proposed tax plan of the Jamaica Labour Party, JLP.
He was speaking at his Sagicor Office in New Kingston this morning as he discussed Jamaica’s performance under the IMF programme for the month of December2015.
The IMF programme is set to end March 2017. The review for December 2015 takes on a similar pattern as all other periods under the programme.
Tax revenues, the primary balance account, and the Net International Reserves, NIR, are all ahead of target. The fiscal balance of central Government is still at a shortfall.
With the strong performance, Jamaica has entered one of the toughest quarters since the programme began in 2013.
Commenting on the JLP’s tax proposal to increase the income tax threshold to $1.5-million, a cautious Byles says any revenue that will be given up must have an accompanying plan to plug the shortfall.
He says Jamaica will have to renegotiate the programme if it fails to meet the target but expressed optimism that the country will pass the 11th IMF test.