Robinson slams gov’t’s new tax package as ‘economically unsound’

Opposition Spokesman on Finance Julian Robinson has criticised the Government’s new tax package as being economically unsound, saying low-income Jamaicans will bear most of the burden.

Robinson, who was making his contribution to the 2026/2027 Budget Debate in Parliament on Thursday, said the taxes were not well thought out.

“In examining the package that was tabled, what I only can come to a conclusion of is that recognise there was a revenue gap and they had to find the easiest way to find it. The measures are not calibrated to protect the vulnerable. They are not designed around the specific circumstances of a post-hurricane economy. They are simply revenue measures which impact the poor the most,” he said.

Robinson said Finance Minister Fayval Williams' presentation on Tuesday did not address the scale of the disaster Jamaica currently faces and “reads like business as usual”.

“Increasing the burden on the average Jamaican through higher taxes is not the right call at this time. And we on this side do not support it. If we were at the wicket, this is not the shot we would have played,” he said.

Robinson stressed that Jamaica's economy is contracting, adding that taxes are a “pro-cyclical response”.

“The tax base has been weakened, first by 10 years of low growth under this administration, and then by the hurricane. Businesses are earning less. Households are spending less. and the government's chosen response to that reality is to extract more revenue from an already financially stressed population,” he said.

Accusing the Government of compounding the economic problem, Robinson said the more appropriate response in these circumstances is a countercyclical one.

“What does that mean? You push against the slowdown in the economy. You stimulate activity and create the conditions for the tax base to recover organically. A growing economy generates more revenue over time than any package of new taxes imposed on people who are already struggling to stay afloat,” he said.

The Government is projected to earn approximately $29.439 billion in fiscal year 2026/27 from new tax measures.

- Sashana Small

Follow The Gleaner on X, formerly Twitter, and Instagram @JamaicaGleaner and on Facebook @GleanerJamaica. Send us a message on WhatsApp at 1-876-499-0169 or email us at onlinefeedback@gleanerjm.com or editors@gleanerjm.com.