Is the extra SCT on petrol $7 or $9?
THE EDITOR, Sir:
The Jamaican Government has taken the decision to hedge against an increase in the price of petroleum on the world market and is to impose a $7 per litre tax on petrol to pay for the mechanism (Gleaner, Friday March 13, 2015).
However, it was taken it would have been a simple straightforward tax. To the existing Special Consumption Tax (SCT) of $16.1061 on E10 87 and $16.4792 on E10 90, we would pay an additional $7 to make the SCT $23.1061 and $23.4792 respectively.
Then, why is it when you visit the Petroleum Corporation of Jamaica (PCJ) website http://www.pcj.com to view its price breakdown the movement in the SCT is actually $9? I am quite sure the Minister of Finance and Planning Peter Phillips said $7.
Is it that the PCJ erred or it has free reign over its products and can add taxes as it pleases? Is it that the minister lied? Where is the additional $2 going? Consolidated Fund or PCJ bottom line?
Just questions I thought I would ask, since they thought we would not notice.