BITING CRITICISM of and widespread disgust with the Government's latest tax package has forced the Jamaica Labour Party (JLP) government into reverse gear as it changes course on measures deemed by many to be "oppressive".

At the same time, the opposition People's National Party (PNP) has planned peaceful protests for Wednesday at different locations across the country, as it calls on the Government to roll back the taxes.

Up to late last evening, Cabinet members were at Jamaica House working feverishly to revise the taxation package announced by Finance and Public Service Minister Audley Shaw last Thursday.

A government source told The Gleaner that some of the taxes, which triggered a public backlash, have been rolled back.

Up for review

Following a chorus of objection to the new taxes from various sectors of the economy, the opposition PNP and ordinary Jamaicans, Prime Minister Golding said on Sunday that his administration would review the new measures.

Earlier yesterday, the Government held meetings with members of the private sector and other interest groups to explore other proposals that could replace some of the new tax measures, set to take effect on January 1, 2010.

Yesterday, Opposition Leader Portia Simpson Miller made a formal request to Prime Minister Bruce Golding to delay the implementation of the tax package.

In a letter to Golding, the opposition leader asked that Parliament be given the opportunity to consider and debate any revised proposals before they were introduced.

"I am making these requests in light of my strongly held position that Parliament is the appropriate forum for consideration and approval of all taxation measures," Simpson Miller outlined in her letter.

Simpson Miller had signalled that the PNP would take to the streets in peaceful protests against the measures.

General Secretary of the PNP, Peter Bunting, met yesterday with acting Commissioner of Police Owen Ellington to discuss the parameters for staging a peaceful protest.

In an interview on Radio Jamaica yesterday, Bunting said the party requested permission to stage peaceful protests on Wednesday in at least six major towns.

Placards

He said the nature of the demonstrations would involve the bearing of placards.

Meanwhile, at least three groups representing working-class Jamaicans want the Government to seek alternative tax measures instead of going after everyday items.

Dunstan Whittingham, president of the Jamaica Vendors, Higglers and Markets Association, said the new taxes would send consumption down.

"What we think is that it cuts the spending power of the Jamaican people. People will have to be cutting back on items, things that they drink and eat."

He is calling on the administration to examine alternative areas, such as increasing taxes on government bonds.

Whittingham also wants a higher rate of taxes on appliances, which use a higher voltage of electricity, such as flat-screen televisions and refrigerators.

Whittingham said the recent increase in the income-tax threshold from $320,000 to $441,000 would mean nothing, as the tax increases would eat into the disposable income of the working class.

Glendon Harris, president of the Jamaica Agricultural Society, said the new tax measures announced would affect the agricultural sector in several ways.

Harris said the sector would have to deal with higher production costs and reduced consumption.

He said this would reverse gains made by the 'Eat Jamaican, Buy Jamaican' campaign, as foreign produce would be cheaper.

"This is going to hamper all the forward steps that we have made and throw agriculture back into the dungeon. This will increase production costs. Farmers now cannot afford chicken feed, fish feed and pig feed. How can you absorb these costs so quickly?" he questioned.

Harris also said the new taxes would hit the Agricultural Business Information System (ABIS) programme developed by the Rural Agricultural Development Authority to provide information on crops, livestock, markets and stakeholders to support the business of agriculture.

He said farmers had been suspicious that ABIS was a mechanism to get information on them to drag them into the tax net, and now it would be hard to get them to register. Harris wants the Government to tax more affluent members of the society, as well as luxury items.

Gary Harriott, general secretary of the Jamaica Council of Churches, said that the Government should look at spreading the tax burden around.

"Generally speaking, we are sensitive to the economic challenges the society is facing, but we felt the tax package was too burdensome for the people," he said.

Harriott welcomed the Government's announcement that it would reconsider the tax package and hopes it enters into dialogue with the Opposition and other sectors of the society to find a solution.

PNP plans protests in the following areas between 8 a.m. and 1 p.m.:

Region 1 - St Ann's Bay

Region 2 - Highgate Square

Region 3 - Cross Roads

Region 4 - Caymanas Crossing with Mandela Highway

Region 5 - Mandeville town centre

Region 6 - Sam Sharpe Square