THE EDITOR, Sir;
ON 23RD March 2004, I heard one of the weirdest proposals coming out of the Office of Utilities Regulation (OUR). Out of respect for the OUR I will not use a stronger word than 'weird' to describe this proposal.
At a time when Jamaicans are yearning for either a reduction in tax rates or an outright removal of some of these taxes, the OUR is asking the Government to impose a tax on the electricity which is being used by residential customers. This leads one to wonder whether or not the OUR is really acting in the interest of the consumers.
The facts are as follows:
1. The Jamaica Public Service (JPS) is the last asset which was sold by the Government.
2. JPS was purchased by investors who would have done the relevant pre-feasibility studies and due diligence work.
3. The investors were fully aware that they were acquiring a white elephant.
4. Major investments that should have been pumped into JPS are still 'absent'.
5. In addition to the energy charge, the overburdened consumers currently pay a variable fuel charge.
6. The overburdened consumers also currently pay a variable foreign exchange adjustment.
If JPS requires a breathing space in their cash flow then I propose that JPS be granted a 'Zero Rating' status. This should have been put in place years ago, however it is not late to do it now. The Corporation Tax will take care of some of the taxes that the Government will be giving up.
I am, etc.,
DR. BRUCE JOHNSON
Business Expansion Consultant
Ruthven Road,
Kingston 10
