Tweet
<span style="font-weight: bold">News Source: OTGNR - </span>
<span style="font-weight: bold"> EU funded consultant reports a ...Gov't freeze...</span>
Source: (Gleaner) A European Union (EU)-funded consultant is reporting a nearly 55 per cent increase in the value of waivers granted by the Ministry ofFinance and the Public Service, despite a freeze imposed by the Government last August.A document, prepared by Paul Mathieu, who is paid by the EU to work with the local finance ministry, describes the increase as "a rather baffling outcome" as the freeze on discretionary waivers was meant to "put the brakes on the speed at which the Government's fiscal revenue is leaked" and not to "accelerate the pace at which those leakages took place".So far, Finance Minister Audley Shaw and head of the EU delegation to Jamaica, Ambassador Marco Mazzocchi Alemanni, have refused to comment on the document.Shaw, though, said he was unconvinced about the accuracy of the report."There is no increase since the freeze has been imposed. The increase is only in relation to a quota. Before we had the quota, it was way above that. It was (the case) that waivers (had) just gone wild and crazy. The increase is only in relation to the quota," Shaw said. Ambassador unawareThe minister added: "The quota can't be judged on a one-month period alone; it has to be averaged over a period of time. It is possible that in the December period, it would have exceeded the quota because, at the time, we would have had to do more waivers like for rental cars and stuff like that."Meanwhile, Mazzocchi Alemanni said he was unaware of whether the contents have been confirmed."I don't remember that particular paper because Mr Mathieu is in the habit of producing lots of papers and they are not all confirmed," he said.He added: "Not everything he writes is cast in stone."The document states that before August 1, 2010, the monthly average of forgone revenue due to waivers was $907 million. After the freeze was put into effect, the average monthly revenue forgone increased to $1.4 billion, the document added.Data published on the finance ministry's website is identical to that contained in the report in relation to waivers approved between December 2009 and November 2010.In the meantime, Shaw said the ministry has set itself a quota in order to rein in the waivers.He said come the start of the new fiscal year in April, a new waiver regime will come into effect.Mathieu has also refused to comment on the document. He told The Gleaner via email that memos written by him are confidential."My assignment in Jamaica is indeed confined to a technical assistance by which GOJ's (Government of Jamaica) general eligibility to EU-funded budget supports is continuously monitored and demonstrated in the most possibly convincing manner," he said. "This namely entails making sure that Public Finance Management Reforms are effectively and efficiently implemented all along," Mathieu said.He added: "When concerns arise with that respect, it is my duty to draw the GOJ's and EUD's attention on the potentially resulting failure to demonstrate GOJ's continued compliance with this overarching general disbursement condition."Last year, the ministry announced a reduction in all discretionary waivers granted and that a new tax waiver-incentive policy and strategy would be done within the context of achieving a significant reduction in the total value of waivers granted.In regard to specific waiver conditions, Shaw said the regime for approval of motor-vehicle concessions to farms-farmers has been modified such that only farms or farmers registered with the Rural Agricultural Development Authority could apply for concessions once every five years."The number of motor vehicles accessible under this facility will be determined by a combination of farm size and production," the ministry said.It added: "Effective August 1, 2010, the duty concession to the rental vehicle industry (U-Drive) has been frozen. This means that no applications for duty concessions applicable to the Rental Vehicle Industry (U-Drive) will be considered or approved between August 1, 2010, and the date of adoption of a new tax-waiver policy and strategy.However, waivers published on the ministry's website, as well as Shaw's admission, confirm that U-Drive waivers are still being approved by the minister.The Government had long signalled its intention to reduce the granting of waivers. Prime Minister Bruce Golding, in his contribution to the 2008-2009 Budget Debate, said, "For every $100 of revenue we collect, $60 goes back out in tax relief, waivers and concessions."Discretionary waivers are a matter of great concern. They are granted primarily by the minister of finance and, to a lesser extent, the minister of agriculture. They come under a lot of pressure from waiver seekers. I don't like it one bit! They (the ministers) don't like it either," the prime minister had said.
<span style="font-weight: bold"> EU funded consultant reports a ...Gov't freeze...</span>
Source: (Gleaner) A European Union (EU)-funded consultant is reporting a nearly 55 per cent increase in the value of waivers granted by the Ministry ofFinance and the Public Service, despite a freeze imposed by the Government last August.A document, prepared by Paul Mathieu, who is paid by the EU to work with the local finance ministry, describes the increase as "a rather baffling outcome" as the freeze on discretionary waivers was meant to "put the brakes on the speed at which the Government's fiscal revenue is leaked" and not to "accelerate the pace at which those leakages took place".So far, Finance Minister Audley Shaw and head of the EU delegation to Jamaica, Ambassador Marco Mazzocchi Alemanni, have refused to comment on the document.Shaw, though, said he was unconvinced about the accuracy of the report."There is no increase since the freeze has been imposed. The increase is only in relation to a quota. Before we had the quota, it was way above that. It was (the case) that waivers (had) just gone wild and crazy. The increase is only in relation to the quota," Shaw said. Ambassador unawareThe minister added: "The quota can't be judged on a one-month period alone; it has to be averaged over a period of time. It is possible that in the December period, it would have exceeded the quota because, at the time, we would have had to do more waivers like for rental cars and stuff like that."Meanwhile, Mazzocchi Alemanni said he was unaware of whether the contents have been confirmed."I don't remember that particular paper because Mr Mathieu is in the habit of producing lots of papers and they are not all confirmed," he said.He added: "Not everything he writes is cast in stone."The document states that before August 1, 2010, the monthly average of forgone revenue due to waivers was $907 million. After the freeze was put into effect, the average monthly revenue forgone increased to $1.4 billion, the document added.Data published on the finance ministry's website is identical to that contained in the report in relation to waivers approved between December 2009 and November 2010.In the meantime, Shaw said the ministry has set itself a quota in order to rein in the waivers.He said come the start of the new fiscal year in April, a new waiver regime will come into effect.Mathieu has also refused to comment on the document. He told The Gleaner via email that memos written by him are confidential."My assignment in Jamaica is indeed confined to a technical assistance by which GOJ's (Government of Jamaica) general eligibility to EU-funded budget supports is continuously monitored and demonstrated in the most possibly convincing manner," he said. "This namely entails making sure that Public Finance Management Reforms are effectively and efficiently implemented all along," Mathieu said.He added: "When concerns arise with that respect, it is my duty to draw the GOJ's and EUD's attention on the potentially resulting failure to demonstrate GOJ's continued compliance with this overarching general disbursement condition."Last year, the ministry announced a reduction in all discretionary waivers granted and that a new tax waiver-incentive policy and strategy would be done within the context of achieving a significant reduction in the total value of waivers granted.In regard to specific waiver conditions, Shaw said the regime for approval of motor-vehicle concessions to farms-farmers has been modified such that only farms or farmers registered with the Rural Agricultural Development Authority could apply for concessions once every five years."The number of motor vehicles accessible under this facility will be determined by a combination of farm size and production," the ministry said.It added: "Effective August 1, 2010, the duty concession to the rental vehicle industry (U-Drive) has been frozen. This means that no applications for duty concessions applicable to the Rental Vehicle Industry (U-Drive) will be considered or approved between August 1, 2010, and the date of adoption of a new tax-waiver policy and strategy.However, waivers published on the ministry's website, as well as Shaw's admission, confirm that U-Drive waivers are still being approved by the minister.The Government had long signalled its intention to reduce the granting of waivers. Prime Minister Bruce Golding, in his contribution to the 2008-2009 Budget Debate, said, "For every $100 of revenue we collect, $60 goes back out in tax relief, waivers and concessions."Discretionary waivers are a matter of great concern. They are granted primarily by the minister of finance and, to a lesser extent, the minister of agriculture. They come under a lot of pressure from waiver seekers. I don't like it one bit! They (the ministers) don't like it either," the prime minister had said.