By Lorraine Mendez
The parliamentary opposition has raised questions about the government’s plan to remove the general consumption tax (GCT) on imported raw foods.
In his opening budget presentation in the House of Representatives, Finance Minister Dr. Nigel Clarke announced the pending removal, noting that it was necessary for Jamaica to remain compliant with World Trade Organization rules and avoid being blacklisted.
But Opposition Leader Mark Golding, during his contribution to the Budget Debate on Tuesday, said based on the People’s National Party’s research, the WTO does not blacklist or unilaterally punish member states for non-compliance.
He also called for Dr. Clarke to be specific on the imported raw food items for which GCT will be removed.
“I note that under the GCT Act (Third Schedule, Part 1, paragraph 6) the category of “raw foodstuff” is extremely wide, and specifically includes fresh fruit, vegetables, ground provisions, legumes, onions and garlic, meat, poultry and fish. The removal of this protection leaves our farmers very exposed to unfair competition from importers, who have little risk,” he argued.
“We know that the rich countries in North America and Europe provide massive subsidies to their agricultural sector, distorting fair competition and giving food imports from those countries an advantage over our producers here in Jamaica,” the Opposition Leader added.
He has called for the proposal to be reviewed and reconsidered, noting that it will put local farmers at a disadvantage.
Mr. Golding also noted that food imports have steadily increased over the last 15 years, reaching US$1.4 billion in 2022, in contrast to $273 million earned from agricultural exports for the same year.
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