Increased Threshold Removes Air From Gas Taxes Posted on April 24, 2009April 25, 2009 by Your Financial FactSheet Jamaica Observer: “Increased threshold removes air from gas taxes” Yesterday, the Minister of Finance and the Public Service, Audley Shaw, presented his second budget financing package. The Minister emphasised that fiscal responsibility, equity in the treatment of citizens as well as tax reform will be major initiatives during the upcoming fiscal year to improve revenues and the new fiscal measures introduced are designed to better position Jamaica to deal with the current global crisis. Jamaica Gleaner: “Fuel tax plugs gap – Income threshold up – GCT bitters salt, syrup, soup prices” REVENUE FROM an increase in the tax on petrol is expected to plug a vast section of an $18-billion hole in the national Budget. Finance Minister Audley Shaw said in Parliament yesterday that $13.3 billion is to be collected from the $8.75 tax that has been imposed on each litre of gas. Jamaica Gleaner: “Economic situation to deteriorate – Shaw” THE ECONOMY shrank by 0.6 per cent in the last fiscal year and projections for the current fiscal year are that the situation will deteriorate further. Minister of Finance and the Public Service, Audley Shaw, in his opening contribution to the 2009-2010 Budget Debate, said yester-day that real gross domestic product (GDP) growth for this fiscal year was forecasted at between negative 2.5 and 3.5 per cent. Jamaica Observer: “Latin America and Caribbean economy will shrink in 2009 – IMF” Latin America’s economy will shrink by 1.5 per cent in 2009, ending six years of strong growth as the world economic crisis slashes financing and demand for exports – though dealing a softer blow here than in many regions, the International Monetary Fund said Wednesday.
Gas Tax is the Fairest and Most Efficient Tax in Jamaica Posted on April 23, 2009April 23, 2009 by Your Financial FactSheet Jamaica Observer: “Gas tax is the fairest and most efficient tax in Jamaica” On Monday, both the Observer and Gleaner newspapers suggested that an increase in the taxation of gas was coming. The argument was made by “highly placed sources” that without a cess on gas, it would not be possible to pay for needed infrastructure, particularly roads and bridges. Jamaica Gleaner: “Latam Economy to Shrink 1.5% in 2009” Latin America’s (LatAm) economy will shrink by 1.5 per cent in 2009, ending six years of strong growth as the world economic crisis slashes financing and demand for exports – though dealing a softer blow here than in many regions, the International Monetary Fund (IMF) said Wednesday.
IMF: Losses From Global Credit Crisis Mounting Posted on April 22, 2009April 22, 2009 by Your Financial FactSheet Jamaica Observer: “IMF: Losses from global credit crisis mounting” WASHINGTON, USA -The International Monetary Fund (IMF) said yesterday worldwide financial institutions could suffer more than US$4 trillion in losses from the global credit crisis with the US leading the way with a total of US$2.7 trillion. Jamaica Observer: “Canada cuts interest rates to record low” TORONTO, Canada – Canada’s central bank on yesterday cut its trendsetting interest rate by quarter point to a record-low 0.25 per cent and said it will likely stay there through June 2010. The Bank of Canada said the global recession has intensified and they expect the recession in Canada will be deeper than anticipated. Jamaica Observer: “Making the most of a crisis: Promoting financial health” ” You never want a serious crisis to go to waste.” – Rahm Emanuel In Jamaica the global economic downturn has resulted in frozen wages, reduced employment benefits and even job losses which have in turn precipitated many personal financial crises. Jamaica Observer: “Jamaica’s underdevelopment tied to inability to earn FX” Jamaica needs to earn foreign exchange via export-led growth and abandon its policy of borrowing in order to play economic catch-up with Guyana and the rest of the region, writes financial analyst Dennis Chung in his new book – Charting Jamaica’s Economic and Social Development.
Obama’s Promises and Perils Posted on April 21, 2009April 21, 2009 by Your Financial FactSheet Jamaica Observer: “Obama’s promises and perils” The highly anticipated regional Summit of the Americas has just concluded with the usual pomp and pageantry and with heaps of flashing camera and television lights. Jamaica Observer: “Beyond the budget figures” In tabling the estimates of expenditure for the fiscal year 2009 – 2010, the government has revealed its intention to spend $72.58 billion on the formal education system.