Cement price hikes

CORRECTIONS AND CLARIFICATIONS: The Taxpayer Audit and Assessment Department (TAAD) said certain construction items, including items, including Portland (Grey) Cement manufactured and sold by the Caribbean Cement Company, attract General Consumptin Tax (GCT) of 12.5 per cent and not 15 per cent as per other items.

The TAAD Public Relations Officer, Florence Wilks, responding to an article in today's Gleaner on cement price increases said the following costruction items also attract GCT of 12.5 per cent: premix concrete, cement blocks, steel reinforcing bars, quarter-inch steel wire and No. 16 steel wire. She said this was done by a provisional order dated April 24, 1995.

Mahabir

JAMAICANS WILL have to pay more for locally manufactured cement as of today.

Consumers will now have to pay $245, plus 15 per cent GCT per bag of ex-factory bagged cement; $5,240, plus GCT per metric tonne of ex-factory bulk cement, and $8,250 plus GCT for a 1.5 metric tonne jumbo bag of the construction material.

According to the Caribbean Cement Company Limited (CCCL) the price adjustments are intended to improve its ability to remain in business.

In a statement on Friday, general manager Kelvin Mahabir said the steady slide of the Jamaican dollar since January 2000 and increased costs to the company over the past 18 months because of upward trends in fuel and electricity prices, were having an adverse impact on its ability to operate efficiently and maintain profitability.

Mr. Mahabir said, "the new bagged price will be US$5.35 per bag, while the March 1998 price was US$5.62." The US 27 cents difference is, however, unlikely to offer any consolation to local cement buyers who paid just over $200 per bag in March 1998 when the exchange rate stood at an average of J$36.51 to US$1.00.

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