Gas tax on table
March 01, 2006
GOVERNMENT YESTERDAY tabled new proposals for an energy policy which could include the reintroduction of a value-added tax on gas.
In presenting the measure, Prime Minister P.J. Patterson said the Jamaica Energy Policy 2006-2020 was aimed at tackling the social and economic threats created by rising oil prices across the world.
Mr. Patterson told the House of Representatives that the current "wave of oil price increases" represents the fourth since 1973.
"(But) unlike the previous ones, there is a common prognosis that this one represents a permanent rise, and the days of low prices have ended, and this does not augur well for oil-dependent economies such as Jamaica," the Prime Minister said.
He told members of the House that the new Jamaica Energy Policy will be subjected to the scrutiny of parliamentarians, interest groups and the public at large before a final draft is completed.
The document is intended to place greater emphasis on energy efficiency, fuel sources, and energy use in transportation than did an earlier policy developed in 1995.
"The Green Paper deals with these issues, as well as others such as environmental impacts, under the various areas of the energy sector such as energy supply and security," Mr. Patterson said in outlining some of the fundamental concerns put forward in the document.
Other issues examined in the document include diversification of energy types, with focus placed on natural gas, coal and renewables; and a potentially explosive examination of the petroleum tax regime.
According to the tabled document, "The Government will undertake studies and conduct consultations with a view to the possible introduction of an ad valorem tax in transportation fuels and the dedication of the increased revenue to the Road Maintenance Fund ..."
About 20 per cent of the revenue would be provided to the National Energy Fund to support conservation, efficiency and renewable energy projects....
Author: Robert Hart
Source: Jamaica Gleaner
