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JGRA against gas tax increase suggestion

Published:Monday | January 11, 2016 | 12:48 PM
In this March 2015 file photo two men are seen stealing gasolene from a gas truck along Marcus Garvey Drive in Kingston.

The Jamaica Gasolene Retailers’ Association (JGRA) is opposed to a proposal by a leading economist that the Government increase the tax on gasolene in order to fund the national budget.

The economist, John Jackson, made the suggestion last week as he called for urgent radical tax reforms.

Jackson reasoned that there are few areas in which the Government can collect taxes that are as efficient as a tax on gasolene.

He said this is because there is minimum leakage in the tax collection on petrol.

However, president of the JGRA, Leonard Green says Jackson’s suggestion is untimely, especially in light of the ongoing bad gas saga.


president of the Jamaica Gasoline Retailers’ Association, Leonard Green

Green says the JGRA also does not support the proposal because motorists have shouldered increases in a number of taxes in recent years, including gas and licensing.

Green was speaking on Independent Talk on Power 106 FM this morning.

The special consumption tax on petroleum has both specific and and valorem components, which vary by product.

In making the proposal, Jackson said diesel should be exempted from the cess in order to safeguard the public transport sector.

Jackson said the Government could provide some relief to motorists by removing the fee on motor vehicle licences.