Damion Mitchell, News Editor - Radio & Online
An influential member of the Jamaica Gasolene Retailers’ Association (JGRA) has mooted that the government considers a review of the Special Consumption Tax on fuel instead of imposing GCT on the commodity.
According to JGRA past president, Trevor Heaven, imposing GCT on fuel may not yield the results the Government wants as there will still be the risk that some businesses may not remit the tax to the Government at the end of the month.
However, Heaven says with an increase in the Special Consumption Tax or the ad valorem component collected at source, the Government would be more assured of raking in all the due revenues from the measure.
Heaven says should the Government decide against imposing the additional tax at source, the industry will only be able to absorb a reduced rate of GCT on fuel.
Heaven was speaking against the background that the Government is pondering adding GCT to each litre of fuel as it tries to make up the revenue shortfall for the Budget.
The Government confirmed the revenue shortfall this week in a ministry paper tabled in the House of Representatives as part of the agreement under the International Monetary Fund.
The Government has cited that the revenue shortfall was the result of lower imports and weak economic and labour market conditions.
Heaven says any additional tax would mean more sacrifices for gasolene retailers and consumers.
However, he says it is necessary for the Jamaican economy at this time.
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