Jamaica
Gleanner
Kingston
Petroleumworld.com
03 05 06
THE OPPOSITION
yesterday flatly rejected Government's proposal that a value-added
tax on gasolene be considered, dashing the administration's
hope of achieving bi-partisan agreement on the contentious issue.
Riots broke
out mainly in the Corporate Area during April 1999 when the
Patterson administration attempted to raise the tax on gasolene.
The three-day unrest forced Government to back down from the
proposed measure. A similar taxation measure also triggered
unrest under the Seaga administration during the 1980s.
"The
Opposition ... would vigorously oppose any increase in the tax
on gasolene which cannot be justified, especially at a time
when gas prices are already at an all-time high," Opposition
Leader Bruce Golding told Jamaica Labour Party (JLP) workers
in Montego Bay yesterday. His response comes fast on the heels
of the tabling of an energy policy green paper in the House
of Representatives by Prime Minister P. J. Patterson on Tuesday.
In presenting
the document, Mr. Patterson warned that "the days of low
prices have ended, and this does not augur well for oil-dependent
economies such as Jamaica." The country wracked up an oil
bill of more than US$1 billion (J$65 billion) last year, and
the price of oil is currently over US$60 per barrel on the international
market.
According
to the Prime Minister, the proposed petroleum tax regime is
aimed "primarily to drive efficiency and conservation,
and secondarily as a source of revenue to maintain roads and
encourage energy conservation."
JUSTIFICATION
QUESTIONABLE
But Mr.
Golding countered yesterday that "the justification being
offered for increasing the gas tax was questionable, if not
dishonest, because it did not take into account the fact that
the general burden of taxation in Jamaica is much higher than
that of most other Caribbean countries."
In this
regard he noted that the motor vehicle import duty in Jamaica
was higher than what obtained in other Caribbean countries except
Guyana, while the tax-free threshold in other Caribbean countries
was more beneficial to income earners than in Jamaica. Said
Golding: "Countries which leave the people with more money
in their pockets can, with greater justification, charge a higher
tax on gasolene. Jamaica can claim no such justification."
Despite
his scepticism, Golding said the Opposition was studying the
energy policy green paper and was ready to hold "constructive
discussion" with the Government and critical stakeholders.
