Newsmaker: Campbell’s food import tax proposal sparks controversy

This week's featured development as Newsmaker of the Week is the now withdrawn controversial proposal by Opposition Spokesman on Agriculture, Dr Dayton Campbell, to impose a tax on imported agricultural produce to establish what he called an Agricultural Development Fund.

In what political observers are calling an "own goal" scored by Campbell ahead of the general elections that are due by September of this year, the People's National Party (PNP) has been forced into damage control mode to clarify its general secretary's proposal if the party forms the next Government.

Campbell's initiative, which was met with swift criticism from the governing Jamaica Labour Party (JLP), continues to dominate the headlines nationally, and has sparked a heated debate about the country's agricultural sector.

But despite Opposition Leader and PNP President, Mark Golding, insisting that there is no plan for any new tax by a new PNP Administration, JLP bloggers and officials continue to hammer the parliamentary Opposition and, by extension, Campbell.

Prime Minister Andrew Holness was the latest Government and JLP official to add his voice on Saturday morning to the controversial remarks from Campbell.

"Tax on imported goods would mean higher costs for Jamaican consumers, and it would not necessarily lead to increased local production," said Holness in a post on Facebook.

Prime Minister Andrew Holness

"The key to growth is not higher taxes; it’s higher productivity, smarter investments, and a commitment to innovation," Holness added.

He said this is why his Administration is "making bold moves to integrate better technology, provide stronger financing for farmers, establish long-term supply contracts, and invest in storage facilities to stabilise output during times of plenty or scarcity.

"For example, this Administration is turning talk into action with the Pedro Plains Irrigation Project, which will transform thousands of acres of farmland by ensuring access to water, unlocking the true potential of our agricultural sector," Holness stated.

Before withdrawing his controversial proposal, Campbell told a meeting in St Elizabeth on Tuesday that the tax would be used to create a dedicated pool of funding to develop the local agriculture sector.

He elaborated that the tax will be similar to the levy that was imposed on incoming international calls, which was used to create the Universal Service Fund, which has been able to establish Wi-Fi hotspots around the country, among other things.

Similarly, Campbell referenced the Tourism Enhancement Fund (TEF), from which he said a dedicated tax that is paid by visitors to the country is used to finance mainly tourism-related developments across the country.

"Now is the time when we must put a little thing on the imported food into the country by creating an agricultural fund," said Campbell at a political meeting in Southfield, South East St Elizabeth on Tuesday.

But two days later, after the backlash and broadside on social media platforms and in the local traditional media, Campbell withdrew the remarks during a radio interview.

"I can understand why persons would have gotten the interpretation (that a new tax was being proposed)... It was said in a way that would lead to that interpretation," said Campbell on radio Thursday.

"What I don't want is to give the impression that I'm trying to justify what I said... I am withdrawing the term (put a little thing), withdrawing all of that... I am saying the idea... is that Jamaican land we love, with 250,000 registered farmers, needs to have an Agricultural Development Fund," Campbell stated.

But before the withdrawal, the proposal was quickly met with criticism from the JLP's communications taskforce spokesman, Marlon Morgan, who described it as "ill-advised and a recipe for disaster".

Morgan argued that the tax would lead to increases in the price of basic food items, and would unduly burden the Jamaican people.

Marlon Morgan

"Such taxes would not be absorbed by importers, but instead would be passed on to consumers, with the poorest among us likely to be the hardest hit, as they of course expend a great proportion of their disposable income on basic food items," Morgan posited in a statement on Wednesday.

Minister of Agriculture, Fisheries and Mining, Floyd Green, also weighed in on the proposal, describing it as "impractical and outdated".

Green added that Jamaica's importation policy is designed to supplement local production, ensuring affordability and accessibility for all Jamaicans.

Floyd Green

"Any such tax would drastically increase the cost of living, and in a globalised economy governed by free trade agreements, it would invite retaliatory tariffs on our locally produced food. Such a move would jeopardise both local farmers and consumers alike," added Green.

In an attempt to clarify Campbell's remarks, PNP President Mark Golding said the party does not see a need for new taxes at this time.

Instead, Golding suggested that the focus should be on ramping up local production to replace imported foods, and strengthening the economy and food security by reducing dependence on foreign produce.

"You know, we have some ideas and some of our spokespersons from time to time may say certain things," the PNP president told a party workers’ meeting in Manchester on Wednesday.

Opposition Leader Mark Golding

"One of them (the initiatives), for example, is that the existing taxes that are collected on imported food items. We should earmark those funds to developing local agriculture that can eventually replace those imports," Golding elaborated.

"So, we grow local production to replace imported food, but we're not talking about putting any new taxes on imported food because we don't see the need for that at this time," he declared.

In seeking to explain further, Golding touted the success of tax reforms, such as the Employment Tax Credit, that was initiated and implemented by the previous PNP Administration.

 He said the reforms have increased revenue without stifling economic activities.

Despite the controversy relative to the proposal, the PNP president has maintained that the party is committed to practical solutions that empower Jamaicans, promote local production, and reduce the country's reliance on imports, without imposing additional burdens on the citizenry.

However, some social media users appear to be sceptical about whether it was the proverbial 'slip of the tongue' from Campbell, or whether Golding will honour his words that no new taxes will be implemented by the PNP should they take leadership of the country.

In fact, the JLP, through Marlon Morgan, blasted the PNP's walk-back on the proposed tax on imported food as "gas lighting" and an insult to Jamaicans.

As the debate continues, one thing is clear: the issue of food security and the development of the local agriculture sector will remain a key topic of discussion in the lead-up to the next general elections.

For West Portland Member of Parliament (MP) and Minister of Science, Energy, Telecommunications and Transport, Daryl Vaz, Jamaicans must "take sleep and mark death" relative to Campbell's tax statement that has since been withdrawn.

"Let’s leave the management of Jamaica to the proven JLP economic performers (eight consecutive years of no new taxes)," posted Vaz on X (formerly Twitter).

Daryl Vaz

"Always beware of the PNP wrecking crew whose only plan is TAXATION WITHOUT REPRESENTATION. How can this man (Campbell) be increasing taxes from outside the Parliament?" Vaz asked.

Said another user on X: "Dayton TAX Campbell is clueless about the needs, wants and implementation of value-added resources to the agricultural industry."

Another man wrote that, "Damage control, (rather) than a genuine explanation. While he (Campbell) may be trying to reassure the public, the initial suggestion reveals a deeper issue: the lack of a clear and transparent plan from the PNP.

"When a high-ranking member, such as the General Secretary @DaytonCampbell, isn’t clear on important policies, it raises serious concerns about the party’s direction," the man opined.

On Instagram, a woman disagreed with the criticisms being levelled against Campbell and Golding.

"I for one agree that we should increase taxes on food that are imported, which are competing with our local food," the woman opined.

Said a man: "Don't get your knickers in a knot over their plan to tax imported food.

"Let them do it! It's time the public exercise its power to let all that expensive food rot on the shelves. Buy locally-grown food to stimulate the economy," he commented.

But in response, another Instagram user disagreed.

"If we buy local only, the poor people dead from hunger cause the demand will go through the roof because the supply is limited.

"The farmers in JA (Jamaica) need to modernise. They don't even invest in cold storage, therefore, our agricultural market is extremely cyclical," the user claimed.

On Facebook, a woman stated that, "When I visited Senegal a few years ago, they had placed a limit of how much rice, onions and a few other staples could be imported. That opened the door to local farmers without raising the prices on imports. Win-win. Easy."

Added a man: "Once is not local farmers they taxing, I am all for it! Let our local people win for a change."

Another man wrote that, "PNP was on a roll and the G (General Secretary Campbell) chat too much 'bout tax (on) imported goods... Before him beg for reduced tax on basic necessities like flour, rice, etcetera, and household solar materials, where people like myself a feel it."

Meanwhile, a woman said the PNP needs to get its "house in order" if it is serious about winning the next elections.

"If the PNP had clear policies, this blunder would have been avoided, because the words 'add a little thing' to me only mean taxes in my head, and Dayton Campbell need to stop talking sometimes; get y’all houses in order man, election is near!" she stated.