First Look

Complant Waivers.



Jamaica Manufacturers’ Association | 2012-06-04 08:39:00

The Jamaica Manufacturers’ Association is deeply concerned about the implications of waivers afforded to Pan-Caribbean Sugar Company Limited (PCSC) and/or its subsidiaries on the local manufacturing sector.
The issue for the Association as it relates to the government’s agreement with PCSC is that the Company has been offered tax breaks and waivers to import products that are locally manufactured. We note specifically that fertilizer was listed as one of the goods eligible for waivers whilst we already have an established manufacturer of this product in Jamaica. In this regard, if the government has allowed, as part of the agreement for PCSC to retail its imported fertilizer, we could be on the verge of the closure of another manufacturing facility in Jamaica.

Whilst we are aware that incentives are utilized by Governments across the world to attract investment, we have to ensure that it is not to the detriment of those who have already invested millions in the challenging field of manufacturing. We recognize the importance of attracting new investors to Jamaica but urge the Government to ensure that due process is followed in making commitments that will in turn create losses in the manufacturing sector, increase the loss of foreign exchange and increase our trade deficit.

In addition, the years afforded for incentives such as the waiver of Corporate Income Tax must be thoroughly analyzed. Was the twenty (20) years granted to PCSC based on a cost/benefit analysis to the country and is it in keeping with international best practices? Based on current locally legislated incentives the most time given for tax relief is fifteen (15) years, which is afforded to the tourism sector.  

We therefore call on the government to make public the details of this agreement and to ensure that the playing field is fair and has not further eroded the competitiveness of a local manufacturer vis-à-vis an importer. If this is the case, it needs to be rectified immediately.

We also ask that the government indicates if the imported fertilizer is meeting the quality standard and requirements of our local farmers and Jamaican conditions as the health, food safety and security of Jamaicans are of utmost importance.

Contact: Imega Breese McNab
Jamaica Manufacturers’ Association
Tel: 922-8880-3; 999-2455        
Email: jma@cwjamaica.com

 




Posted By :Rochelle Roye

Company Name : Jamaica Manufacturers’ Association

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