Opposition spokesman flags pre-hurricane money problems amid new tax measures

Opposition Spokesman on Finance Julian Robinson says the government was already struggling to meet revenue needs before hurricanes Beryl and Melissa, even as he stressed the need for strategic use of funds from the newly proposed taxes.

Robinson was responding to Finance Minister Fayval Williams’ tabling of the proposed 2026–2027 Budget and its revenue measures in the House of Representatives on Thursday.

“Before we get to Melissa or even before we got to Beryl, it's important to remind the country that for the last two fiscal years, government's revenues have been struggling to meet government expenditures,” Robinson said. Beryl hit Jamaica in July 2024 and on October 28, 2025 came Melissa, the record-breaking category 5 storm that has left over US$8.8 billion in damage, equivalent to 41 per cent of the country's GDP.

Robinson said the government relied on one-off transactions to fund the budgets - the sale of 12 years of future revenues from Norman Manley International Airport that yielded $75 billion for 2023–2024, while 10 years of future revenues from Donald Sangster International Airport generated $61 billion for 2024–2025.

“Without Beryl and without Melissa, the government would have had to find some other asset to sell to meet the demands of the budget,” Robinson said.

Turning to the new tax measures, Robinson addressed the Special Consumption Tax (SCT) on non-alcoholic sweetened beverages, emphasising concerns about its impact on children.

“I know there is a public health imperative, a very big one. But I will say to you, I do not believe the price increases will change behaviour,” he said, noting that young schoolchildren are among the “greatest consumers”.

He said: “We need to change the culture. But when you look at the demand for these goods and the level of the increases, I would posit that it's a relatively inelastic demand, meaning that I don't believe that you're going to have much behaviour change.”

Robinson recommended that revenue from the measure be reinvested in the agriculture industry to support healthier alternatives "so that natural juices, unsweetened natural juices can be provided as alternatives to the sweetened drinks”.

He also highlighted the Environmental Protection Levy, suggesting the funds be used to enhance climate resilience.

“you anticipate raising $3.6 billion from it and we know that given the nature of climate change we are likely to have future events that some of those resources be put to build resilience whether it being in infrastructure, river training, and other things,” Robinson said.

The Opposition spokesman also welcomed the tabling of the revenue measures simultaneously with the estimates of expenditure, in compliance with the Financial Administration and Audit Act.

The Holness administration’s proposed measures include increases in property taxes, GCT on tourism activities, SCT on alcohol and cigarettes, a new SCT on non-alcoholic sweetened beverages, and GCT on public sector concession vehicles.

The finance minister told Parliament these measures are necessary to address the fiscal gap created by Hurricane Melissa. On Wednesday, she said the new measures would be “calibrated, balanced, and sensitive to the realities facing households and businesses” and assured Jamaicans that “the most vulnerable will be protected.”

The full Budget debate, which will provide further details on the revenue measures and government spending, is scheduled for March.

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