KINGSTON, Jamaica — The Opposition is urging the Government to remove or reduce the taxes on a range of items and commodities amidst rising inflation and fuel prices.

The call was made on Tuesday by Opposition leader Mark Golding during his contribution to the 2022/23 Budget Debate in Gordon House.

Noting that the Budget was based on a projected average oil price of US$67.50 per barrel, Golding pointed out that since that time a war in Eastern Europe has pushed oil prices to well over US$100 per barrel. He noted that approximately 40 per cent of the price of gasoline in Jamaica is made up of various taxes, of which the ad valorem SCT [Special Consumption Tax] is a major component.

“We are proposing that for the duration of the inflation crisis, the government caps the ad valorem SCT on fuel at US$67.50 per barrel, and also at the equivalent for LNG [liquefied natural gas] so that oil prices above that do not result in higher taxes on fuel,” Golding said.

He argued that consumers need a break on their electricity bills and motorists need a break at the pumps as the price for gas is at historic highs.

“Taxi and bus operators need a break. Their costs have eroded the viability of their operations. They are now pressuring the government for a fare increase. Higher transportation costs will affect other prices in the domestic economy. This is the people’s reality, not fantasy,” Golding stated.

He said capping the SCT on fuel at US$67.50 per barrel will take some of the pressure off consumers, motorists and transport operators.

“To us, it would be a meaningful response to the devastating increases in electricity prices and transport costs due to massive increases in the price of oil.

“Since the government has not budgeted for a windfall in taxes on oil prices above US$67.50, capping the tax at that price will not adversely affect the budget,” he noted.

Golding also noted that with the explosion of the internet and access to online shopping, consumers are able to buy personal items from overseas, and have them shipped to Jamaica. He said these items which are not produced in Jamaica have spawned a new industry of firms that bring these goods to Jamaica for online shoppers.

However, he noted that unless the items are less than US$50 [J$7,500] in value, duties and taxes are charged on the value of the purchase. Golding said the duties and other taxes on goods valued at over US$50 are burdensome on consumers who shop in this way to achieve greater value.

“I am calling on the government to increase the tax-free value from US$50 to US$150 [J$22,500] on imported personal items that are brought into Jamaica like this. It will make a tremendous difference to consumers who are seeking to reduce their cost of living by using the new opportunities that modern technology and logistics have made possible,” said Golding.

He also wants the government to reduce the cost to clear a barrel with food and other consumer items from the wharf by 50 per cent from $6,500 to $3,250 during the upcoming fiscal year.

Additionally, the Opposition leader wants the government to remove the taxes from electronic devices.

“It is immoral and bad policy too, for the government to be collecting taxes on devices needed by children to access their education. We once again call on the government to remove all taxes from these devices to make them more affordable and lessen the cost to parents,” he said.