Henry-Wilson

GOVERNMENT has lifted the ceiling of the US$20,000 (freight on board) FOB cost of the vehicles allowed for election campaign purposes, without telling the Ministry of Finance, and the Revenue Protection Division (RPD) which has duties to audit the purchases.

The mid-stream change to the policy and FOB (the value of the vehicles as they are on the wharves in the country from which they are being imported) has allowed some candidates to import high cost luxury vehicles, while other candidates were not afforded the same privilege.

The Finance Ministry in the release issued some six months ago said: "The duty free concession value is capped at US$20,000. This would be the ceiling value of the FOB of the vehicle."

However, information reaching The Sunday Gleaner is that luxury vehicles such as Mercedes Benzes which are valued well over US$30,000 (FOB) are campaign vehicles for some candidates, while "deportee cars" are in the fleet of others.

According to the Finance Ministry, through its information office, the criteria which specify the US$20,000 FOB remain the same as issued.

"We have made no changes to the official document issued in March," Cordel Braham of that Ministry said last week, information which he said comes from Cherry Gordon at that Ministry. "As far as we are aware the FOB ceiling is US$20,000."

Mike Surridge, whose tour of duty at the Revenue Protection Division (RPD) will end in a few days, said that his agency was asked to do an audit and the instructions of the minister was that they would be restricted to that value, (US$20,000).

"We do not care how they purchase them, providing we have a name for the person to whom the vehicles would be allocated and providing it stays within the limit of what the Government has decided they will remit in tax terms, in respect of these cars," he said. "We were asked to audit it, and they have sent us the invoices. I'm not sure that we have got them all yet. But what they have sent us and the checks done, indicates that everything appears to be in line with the general instructions as set out by the Minister."

But the National Democratic Movement and the main Opposition Jamaica Labour Party (JLP) said there were changes to the policy.

The (NDM) which has forged an alliance with the New Jamaica Alliance (NJA) said it was told that there was a policy change.

"I understand that the rules were changed mid-stream," Mike Williams, NDM's general secretary said last week, when asked if that party has luxury vehicles as part of its campaign fleet.

"Initially we were told that we could not get a vehicle above the FOB value. Now we are told that, you can get a vehicle above the FOB value, but duty must be paid on the difference," he stated.

Mr. Williams said the ceiling was lifted to accommodate all parties, but their importation was done early and furthermore, "we live within our US$20,000 ceiling." He said the majority were second-hand vehicles and the NDM was allotted 25 vehicles "which can't share."

Jamaica Labour Party (JLP) chairman Ryan Peralto said it was candidates and not the party which imported vehicles.

Albert Seaga, who processed the documents for JLP candidates seeking to import vehicles, said all the party's candidates and caretakers who took up the offer bought second-hand vehicles.

"They bought 2000 and 2001 year models, second-hand, refurbished SUVs which were in and around US$24,000-25,000. Once we have the US$20,000 ceiling FOBs, you can add to that another US$2,000 for shipping and others. But the duty portion of our candidates' vehicles was not very much," Mr. Seaga said.

According to him, the ceiling on the vehicles was raised to US$30,000, but those using the facility had completed importation before it became known.

The ruling People's National Party (PNP) which is still receiving vehicles is said to have imported some vehicles below the FOB ceiling, and others above the ceiling.

The party's General Secretary, Maxine Henry-Wilson, said the PNP went to the Finance Ministry and proposed that it could import vehicles, some at a higher end of the ceiling and others at a lower end, but still within the concessionary sum.