KINGSTON, Jamaica — With political manifestos now laid bare, the Private Sector Organisation of Jamaica (PSOJ) has issued a pointed response—welcoming bold reform pledges from both major political parties, but cautioning that without disciplined execution and fiscal transparency, the promises could destabilize Jamaica’s hard-won economic stability.
In a sharply worded release, the PSOJ signaled approval of key proposals from both the Jamaica Labour Party (JLP) and the People’s National Party (PNP), while warning that significant income tax overhauls must be backed by airtight fiscal models, not campaign trail rhetoric.
JLP and PNP: Divergent Approaches, Shared Risk
The PSOJ praised the JLP for its emphasis on business facilitation through measures like digital permitting platforms, QR-coded regulatory approvals, and accelerated land title reform—highlighting their potential to untangle red tape and improve investor confidence.
At the same time, the PNP’s industrial strategy—anchored in its “Jamaica 4.0” vision—earned commendation for prioritizing innovation zones, MSME formalization, and new financing mechanisms like the proposed Innovation Fund. These initiatives, the PSOJ noted, could elevate productivity and move the country up the value chain.
But the warm praise ended where tax reform began.
Income Tax Promises Raise Red Flags
Both parties have floated major personal income tax changes as part of their electoral playbooks. The PNP’s pledge to nearly double the tax-free income threshold—from J$1.7 million to J$3.5 million—was flagged as particularly impactful, especially given its vague assurance of being “funded through organic revenue growth.”
Meanwhile, the JLP’s campaign promise to cut the personal income tax rate from 25% to 15% over time, while previously telegraphed in the 2025 budget cycle, still lacks a clearly communicated execution framework.
The PSOJ’s stance was unambiguous: Jamaica’s macroeconomic health is not a bargaining chip.
Call for Full Transparency and Timetables
To preserve fiscal balance and investor trust, the PSOJ is demanding that both parties table the following before implementation of any tax reform:
- Detailed five-year revenue projections and offset mechanisms
- Clear implementation start dates and sequencing
- Debt trajectory and primary surplus forecasts
- Income band–level impact modeling
- Contingency plans in case GDP growth falls short of projections
Bottom Line
The PSOJ’s message is not partisan. It’s procedural. Jamaica cannot afford to mortgage macro-stability for short-term political wins. If these promises are to drive real growth, they must be anchored in data, not slogans.
