How was the budget tax burden shared? - Business - JamaicaObserver.com

How was the budget tax burden shared? - Business - JamaicaObserver.com: "THE government's fiscal policy paper for 2012/2013 advises that Jamaica's fiscal budget is based on a "sharp upfront fiscal adjustment", and projects a slightly lower growth rate of one per cent for the new fiscal year. The fiscal deficit is expected to contract to 3.8 per cent of GDP, representing the difference between "above the line" expenditures of $412.258 billion and revenues of $361.282 billion."

Additional tax measures of a combined $19.3 billion are part of a 15.8 per cent overall increase in tax revenues, from $289.882 billion, to $335.625 billion. As a percentage of GDP, the tax package is estimated to be 1.4 per cent of GDP, but 1.8 per cent on an annualised basis, reflecting the different starting dates for the proposed measures. Whilst it is unlikely that the individual measures will all be implemented exactly on time, and the basis for the revenue calculations are clearly not going to be completely accurate, if one annualises all the individual measures based on the individual start dates mentioned in the tax package, then the increase in the total annualised figure for the tax measures, of $24.88 billion, is exactly equivalent to the 29 per cent increase, from 1.4 per cent to 1.8 per cent of GDP, calculated in the fiscal policy paper.

Read more: http://www.jamaicaobserver.com/business/How-was-the-budget-tax-burden-shared-_11552765#ixzz1w3rZNcqF
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