Lionel Campbell
The tax package announced by the government could very well unravel several key economic indicators and create hardships for many, long before and after the tax relief starts kicking in to PAYE wage earners near the bottom of the scale.
Audley Shaw, the finance minister, has said the effect of the increased gas tax on inflation will be negligible. The taxi and bus lobby, bigger in the rural areas than in the capital city, could give the lie to the minister’s expressed optimism.The main finger in the dyke to prevent the disastrous flood of increased prices and a push on inflation and wage increase demands would be government’s determination not to allow an increase in taxi fares and to clamp down on those who illegally have started to hike fares. In addition, the government’s bus company, the JUTC must set the example with greater efficiency and not increase fares. It’s not just an economic move but also of symbolic significance it would also tell other producers and service providers it’s not the season for price increases and fertilizer for inflation.
NOISY TAXI OPERATORS
The taxi operators in the rural areas will make the most noise about the seven dollars a litre increase in the SCT. They have started already. The ineffective Transport Authority inspectors should get off the seat of their pants and stop standing around in groups in town centres and see to it that fares are not increased unless so authorized by the minister. Minimum wage earners have no way of hiking their pay to get back the increases they would have to pay to taxi operators, many of whom were long ago charging higher fares than those authorized under the previous administration.Rural people pay much higher fares for comparative distances than do people in the KMTR or Corporate Area. Additionally, they also travel longer distances and sometimes pay as much as four times what the typical Kingstonian pays to get to work and school.Perhaps the taxi operators who make little contribution to the revenues, and who are not PAYE contributors and do not contribute to the NHT or NIS could reduce their daily take of between three thousand and five thousand from their operations. In addition, the taxi owners who do not themselves operate their cars could at least stick to their requirements of four or five thousand dollars from the people to whom they let their vehicles to operate.The cigarette tax will soon be accepted or taken in stride by die hard smokers and the high travel tax will be one off for the year for a few people. But a bus and taxi fare high would be an everyday lash to suffering people some having got only a four percent increase and others in the minimum wage category, a ten percent increase.Mr Mike Henry must speak plain language on this one and stick his finger in the dyke.
