Calling for Government Action: Let’s Phase Out the Asset Tax
Amidst the ongoing financial challenges brought about by the global pandemic, Keith Duncan, CEO of JMMB Group Limited, made a passionate plea to the Jamaican government to take action and eliminate the asset tax burden faced by the financial sector.
Here are the key points from Duncan’s address at the annual general meeting in Kingston:
- The financial sector supported the government during the height of the pandemic, and now it’s time for the government to reciprocate by phasing out the asset tax.
- Duncan highlighted the significant financial contribution made by JMMB Group, emphasizing that the asset tax paid in the past fiscal year exceeded the dividends paid to shareholders.
- He stressed that the asset tax had become a distortionary burden on businesses, inhibiting growth and stifling investment.
- Despite initial negotiations to reduce and eventually eliminate the asset tax, the government has yet to fulfill its commitment, causing further strain on the financial sector.
- Duncan underscored the need for the government to create a more conducive environment for businesses to thrive by removing the asset tax, which has been in effect since 2013.
While Jamaica’s macroeconomic stability has garnered praise from international institutions, the microeconomy continues to grapple with challenges, particularly in the financial sector. Duncan urged the government to prioritize fulfilling its promise to phase out the asset tax to facilitate economic recovery and growth.
As we navigate the post-pandemic landscape, it is crucial for the government to consider the long-term implications of the asset tax and take decisive action to support the financial sector and drive economic progress. Let’s work together towards a future where businesses can thrive and contribute to Jamaica’s sustainable development.
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