The Executive Board of the International Monetary Fund (IMF) has released its first review of Jamaica’s Stand-By Arrangement with the Fund endorsing the Government’s move from direct to indirect tax as a positive sign.
The IMF says programme implementation remains strong under the programme, with sustained positive gross domestic product (GDP) growth.
The Fund also says the ongoing revenue-neutral rebalancing from direct to indirect taxes, designed around the principles of fairness, progressivity and efficiency, will further expand the tax base and work incentives.
The has said its move to lift the personal income tax threshold to $1.5 million, effective April 1, is part of the move towards more indirect taxes.
To fill the gap, caused by giving up income taxes, the government announced a $13.5 billion tax package.
However, the parliamentary opposition has been scathing in its criticism of the new taxes imposed by the government.
