Brace for taxes

With Hurricane Melissa leaving a trail of destruction and draining the country's coffers, Jamaicans are now being warned to expect fresh tax measures in today's highly anticipated 2026/2027 Budget presentation.

Finance Minister Fayval Williams did not sugarcoat the grim fiscal picture, making it clear that the financial aftershocks of the monster storm have forced the Government into tough decisions.

"... the impact of the hurricane has reduced our revenue, as economic activity slowed in certain sectors. That creates a fiscal gap that we cannot ignore," Williams said in a statement.

"As a responsible Government, we must now take measured steps to close that gap -- and that will include new revenue measures," she said.

With economic activity grinding to a crawl in key sectors after the disaster, tax collections shrank while recovery bills skyrocketed, widening an already daunting fiscal gap.

"Despite the extraordinary demands which Hurricane Melissa has imposed on the country, we also must continue to attend to the normal business of government which includes repairing roads and bridges, restoring schools and sustaining hospitals, supporting farmers and small businesses, and strengthening critical infrastructure," she said.

In an effort to calm anxious citizens already feeling the squeeze, the Government has promised that fairness will guide the coming measures. A sweeping review of tax system anomalies is under way, with assurances that those least able to bear the burden will be shielded.

"We are reviewing anomalies in the tax system and ensuring that the burden is shared fairly. The most vulnerable will be protected. The measures will be calibrated, balanced, and sensitive to the realities facing households and businesses," Williams said.