JAMAICA | PNP Leader Mark Golding wants an immediate cap on Ad Valorum Tax on Petroleum prices.

JAMAICA | PNP Leader Mark Golding wants an immediate cap on Ad Valorum Tax on Petroleum prices.

KINGSTON, Jamaica May 16, 2022 - The Opposition PNP wants the government to cap the ad valorum SCT on petroleum products to the Ex Refinery price which would be derived if the oil proce were US$67.50 per barrel.

In a letter to today to Finance Minister Nigel Clarke, Opposition Leader Mark Golding pointed out that" the inflation crisis is ravaging people's lives in Jamaica and the spiralling price of a significant contributor to that crisis"

He pointed out that  with world oil prices being higher than the US$67.50 per barrel on which the budget for Fiscal Year 2022/23 was cast, we believe that the government should help to "cushion the crisis" by capping the ad valorem SCT on petroleum products to the Ex Refinery price which would be derived if the oil price were US$67.50 per barrel."

Mr. Golding said this "would provide a meaningful break to Jamaican consumers, given the impact of gas prices on so many aspects of life." In light of this, the Opposition Leader has sent to the Minister of Finance, a draft Order for his consideration which, if implemented, would achieve the outcome with immediate effect with respect to petroleum products manufactured in Jamaica.

THE PROVISIONAL COLLECTION OF TAX ACT

The Provisional Collection of Tax (Special Consumption Tax) Order, 2022

In exercise of the power conferred upon the Minister by section 3 of the Provisional Collection of Tax Act, the following Order is hereby made:

1. This Order may be cited as the Provisional Collection of Tax (Special Consumption Tax) Order, 2022.
2. During the continuance in force of this Order, for the purpose of calculating the special consumption tax payable on Petroleum Products referred to in item 9 (Petroleum Products, Tariff Heading No. Ex 27.10) of the Second Schedule to the General Consumption Tax Act that are manufactured in Jamaica, the Ex Refinery price per litre of those Petroleum Products shall, where the price of the oil imported into Jamaica to manufacture those Petroleum Products exceeds US$67 .50 per barrel, be deemed to be the Ex Refinery price which would have been derived had the price of such imported oil been US$67 .50 per barrel.

Dated this __ day of May, 2022.

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