10 Weeks of fuel price rise, will the GOJ lower the Ad Valorem Tax?

With consumers hurting at the pumps after 10 consecutive weeks of fuel price increases, will the government consider a reduction in the Ad Valorem tax to ease the pains of the consumer?

Flashback to almost a year  ago- March 15, 2011

Dr. Davies says “This tax windfall now being reaped by the Government is counterproductive and unconscionable. The extraction of this unplanned additional amount from individuals and businesses, via the uncapped ad valorem tax, is further contracting aggregate demand and contributing to worsening unemployment and poverty.”

The report further stated.

The Opposition is calling on the Government to examine this matter without delay, and to implement an appropriate cap on the ad valorem fuel tax that is consistent with fiscal targets while avoiding further economic and social dislocation.

http://www.caricomnewsnetwork.com/index.php?option=com_content&view=article&id=2654&Itemid=396

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2 Responses

  1. Seems like this blog is at least 6 days ahead of the general media. This evening TVJ had Mr Heavens commenting on the high fuel cost, that’s crippling Jamaica.

  2. To be honest, life in Jamaica would be a LOT more affordable if our governments could be induced to reduce taxes. Not just the special consumption tax on gasoline (which would only help a little before being overtaken by further price rises) but on lots of other things (so they could reduce GCT from 17.5% back to 15% and reduce the ridiculous number of taxes applicable at the airport which add up to US$80-85 per person whereas the equivalent taxes elsewhere in the region can account for as little as US$25-35 per person). Reduce the tax burden and stimulate growth through economic activity which should generate more tax revenue (from expanded economic activity) in the future. Either do that or use all that excess tax revenue to invest in renewable energy (which is the only way to sustainably bring down energy prices and keep them lower consistently in the long term) and then reduce the tax burden once Jamaica’s energy supply (including that available at the pump) is diversified (so natural gas, oil, solar, wind, hydropower, methane power from dumps, etc providing diverse energy sources for electricity and petroleum and ethanol providing diverse energy sources for vehicles).

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