Opposition Leader Mark Golding says the removal of the general consumption tax (GCT) on imported food items will create an imbalance between imports and local produce.

“The removal of this protection leaves our farmers very exposed to unfair competition from importers who have little risk. We know that the rich countries of the world, North America and Europe provide massive subsidies to their agricultural sectors, distorting fair competition and giving food imports from those countries an advantage over our producers here in Jamaica”, Golding said.

He was speaking during his budget presentation in the House of Representatives on Tuesday (March 19).

“Over the past 15 years, food imports in Jamaica have seen a steady increase, reaching over US$1.4 billion in 2022, according to STATIN [the Statistical Institute of Jamaica]. In contrast, our agricultural exports lag far behind at a mere US$273 million in that year and this is a trend and it underscores the vulnerability of local food production,” he added.

Golding says local farmers have to contend with high GCT on farm supplies coupled with limited access to financial resources.

“The removal of GCT on imported foodstuff will worsen this imbalance between local produce and imported foods. It is likely to adversely impact the sector and the livelihood of farmers while undermining rural communities which are the bread basket of our country,” the opposition leader argued.

As such, Golding is calling for protective measures to be implemented to temper the impact of the removal of GCT on imported foodstuff on local farmers.

“We have consulted with the farming community and a raft of measures have been developed that can mitigate against what could turn out to be a very serious and prejudicial action. If the farmers of Jamaica are to get a fair deal, the idea has been proposed to simultaneously remove GCT from farm input supplies including essential planting materials like seeds and farm tools, and incentivise local producers and strengthen their sustainability,” Golding said.

Additionally, he called for enhanced transparency in food imports, by making the grant of import permits subject to parliamentary approval, and by requiring that import permits be allocated by an equitable and transparent process such as a public auction.

“Until protective measures like those already mentioned are put in place and are working effectively,
replace the GCT on imported foodstuff with a stamp duty on imported foodstuffs, to level the playing
field between imported and locally produced foods and discourage over-reliance on imports. It takes a little care to find solutions, some empathy and some will. Jamaica needs open, prudent governance.
That’s why we are on the road to change,” Golding added.

Finance Minister Dr Nigel Clarke, opening the Budget Debate last week, announced that GCT on raw foodstuff, imported or domestic will be removed.