GOLDING
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.
