Opposition calls for gov't to eliminate SCT on fuel

 

With Jamaicans continuing to grapple with persistent increases in fuel prices, Opposition Spokesman on Productivity, Efficiency and Competitiveness, Peter Bunting, is calling for the government to eliminate the special consumption tax (SCT) on fuel. 

 

His call comes in the wake of Tuesday's announcement of an immediate increase in public transportation fares, following complaints from taxi operators that soaring fuel costs had made it increasingly difficult to operate profitably.

 

Over the last few weeks, businesses have also advertised that the cost of their products will increase due to the higher fuel prices. 

 

Speaking in the Sectoral Debate in the House of Representatives on Wednesday afternoon, Mr. Bunting said the removal of the SCT would ease the economic burden on the country. 

 

"Geopolitical tensions have sent fuel prices skyrocketing and the pass-through inflation now threatens our country, still struggling to recover from Hurricane Melissa, with a prospect of increased interest rates to battle this pass-through inflation. These high fuel prices will provide a tax windfall for the government because of the ad valorem SCT on fuel," he argued. 

 

"I say now is the time to give both businesses and consumers some badly needed relief," he suggested. "I support calls to cap the ad valorem SCT on fuel. But I go further and call on government to eliminate SCT on fuels altogether and instead include fuels in the base of GCT."

 

This, he said, would reduce the burden of cumulative taxation on registered taxpayers and improve economic efficiency.