Gov't has no justification for keeping gas tax - PNP

The Opposition People's National Party (PNP) continues to pressure the government to remove the special tax on petrol amid soaring prices at the pumps.

In a release today, Opposition spokesman on Finance Mark Golding, said the tax which was first implemented by the PNP administration was to pay for an oil hedge to protect the country against rising oil prices globally.

However, he argued that there is no oil hedge currently but the Jamaica Labour Party administration has kept the tax on petrol.

"The hedge tax is now a symbol of the unfairness of the heavy burden Jamaicans are being made to bear and urges the Government to listen to the people," Golding said.

He continued: “Having left the country unprotected, this JLP Government has no moral authority to insist on retaining the oil hedge tax.”

Finance Minister Dr Nigel Clarke on Friday said the government was not in a position to remove the tax given the country's economic situation.

But in explaining the impact of the tax on consumers, Golding said: "Although the JLP Government has abandoned the purpose of the tax, they have not rolled back the tax. At the same time, oil prices have gone up. As a result, the price of gas at the pump is now the highest it has ever been. Indeed, nearly 40 per cent of the price Jamaicans now pay for gas is in fact an imposition of tax."

In other words, the Opposition spokesman said in 2013 when oil was US$100 per barrel, Jamaicans were paying J$112 per litre for gas. In contrast, with oil now at US$65 per barrel, Jamaicans are now paying J$140 per litre.

"Gas at the pump is much higher, even though oil is much lower," he stressed.