YOU WILL EAT THEM WORDS, PETER: Shaw says tax break success will vindicate him

Finance Minister Audley Shaw on Tuesday refused to get into a war of words with the Opposition Spokesman on Finance Dr Peter Phillips, who described the Government’s budget as a “sham” and a “con” among other things.

Phillips made the remarks in Parliament  Tuesday while delivering the Opposition’s response to Shaw’s budget and his revenue measures.

“When payday comes in July one quarter million people will not believe any of those words,” Shaw told Loop News when asked for a response to Phillips’ characterisation of his budget.

“I’ll reply next week Wednesday when I close the budget debate,” he added.

In his Budget Debate presentation at Parliament on Tuesday, Phillips said Shaw’s numbers do not add up and that the "sham budget" will result in hardship to the people.

"The numbers just do not compute,” he said.

Shaw, in respect of the Jamaica Labour Party's campaign promise to remove income tax for employees earning up to $1.5 million, announced last week that the Government intends to extend the benefit to all employees by raising the threshold to $1.5 million, but in a phased implementation over a little less than a year.

Opening the budget debate in Parliament, the minister said effective July 1 this year, the income tax threshold will be increased to $1 million, with the $1.5 million coming into effect on April 1, 2017.

He said the measure will cost $12.5 billion over the remainder of this financial year, which will be funded through a number of tax measures, which were announced.

On Tuesday, Phillips said that the Opposition has no problem increasing the income tax threshold but not in a fashion that would destabilise the economy, and burden the poor in the way Shaw has now done.

"...the JLP promises that swept them to power will be paid for by the farmers in Litiz and Kellits – and by the school children and their parents paying more for taxi fares to go to school," he said of Shaw’s tax break.

"The moral legitimacy of the government has been lost," Phillips said.

According to Phillips, the people of Jamaica needed to brace for further taxes before the end of the year and next year as Shaw’s budget and revenue measures were “unrealistic”.

"For many, this is a 'con' or 'Samfie Trick' pure and simple," Phillips said.