Tue | Aug 22, 2017

Shaw says tax on heavy fuel oil will not affect JPS, light bills

Published:Friday | May 13, 2016 | 5:12 PM
Finance Minister Audley Shaw and his state minister Fayval Williams at a post Budget Debate press conference this morning.

Damion Mitchell, Editor - Radio & Online

The Finance Minister Audley Shaw has declared that the increase in the Special Consumption Tax (SCT) on heavy fuel oil will not affect the Jamaica Public Service Company (JPS).

There had been concern that light bills could be going up because of the increase in the tax on the oil.

But speaking at a post Budget Debate press conference this morning, Shaw sought to allay those concerns.

"It (the increase) is related to the SCT for fuel for road transport only," Shaw said.

Yesterday, Shaw also announced an additional $7 per litre in the SCT on petrol among the new measures to raise $13.7 billion to help finance the Government’s $580 billion budget.

READ: Full list of tax measures

IN PHOTO: The JPS power station at Bogue, which has been converted to use LNG

The minister also unveiled a tax structure for Liquefied Natural Gas (LNG).

However, at the press conference this morning, Shaw he did not say whether this will impact the JPS when it begins to use LNG at its new plant in Bougue, Montego Bay.

READ: JPS Bogue plant to begin using LNG by August 

The Opposition has rejected the Government's tax package saying it will be burdensome.