Board of revenue assistance project

PES covers the period 6/83-3/85 and summarizes an attached special evaluation (XD-AAR-463-A). The project has gone smoothly and successfully to date. The contractor, Syracuse University (SU), has completed planned analyses of personal income tax, tax and investment incentives, foreign trade and domestic indirect taxation, property taxation, and taxation of bauxite and alumina, and is currently conducting studies of public enterprises, taxation of corporations and financial institutions, the incidence of taxation, and tax burdens on low-income families. An SU working paper on comprehensive tax reform is currently before the Prime Minister and Cabinet, and it is expected that recommendations on this matter will be submitted to Parliament for passage in 6/86. The project is now about to enter the more difficult phase of implementation by the Government of Jamaica, namely, the passage of enabling legislation and ensuring BOR"s capability to administer the legislation effectively. Furthermore, Jamaica has experienced a number of economic setbacks during the project period (including, inter alia, substantial currency depreciation; increased gasoline prices, related civic discontent, and resulting decreased tourism; and closings in the alumina industry), and increased fiscal and political pressures are expected from projected FY85-86 revenue losses. Action decisions call the BOR and SU to develop a work plan for the remaining project activities.