Solar devices, LED bulbs to see tax-free light

THE Government is making good on its promise to remove the import tax on solar equipment and LED bulbs, Energy Minister Phillip Paulwell disclosed yesterday.

"I am happy to say that the Cabinet, this week, … has given drafting instructions for the law to be amended immediately so that those of you who were very happy to benefit from taxation-free solar and LED bulbs, you will be able to get that back right away," he said.

The minister was speaking at the launch of the Energy Efficiency and Conservation Programme at The Jamaica Pegasus hotel in New Kingston.

Paulwell explained that new legislation promulgated last year to provide incentives for industries, inadvertently included items such as solar equipment and LED bulbs on the list of taxable items.

"For a situation where at the start of this new administration we had removed all taxation on these items, they got back into the system by inadvertence," the minister said.

Last year, Paulwell announced the suspension of the Common External Tariff on a number of energy-saving devices, which, he said, is a testament to the administration's commitment to developing energy efficiency and renewable-energy markets. He also announced the removal of GCT on several items, including wind turbines, solar cells, panels and tubes, and solar water pumps.

The Government has embarked on the Energy Efficiency and Conservation Programme as it seeks to reduce electricity prices to between US$0.15 and US$0.18, down from the current US$0.38 to US$0.42. The programme is being funded jointly by the Government of Jamaica and the Inter-American Development Bank to the tune of US$20 million.