Gas tax reduction – Is it enough?
Author : teriannI watched in disbelief as the needle on my gas gauge in my car hardly moved after I put in my usual supply. A quick check on the prices displayed on the billboard soon cleared up the mystery.
The cries from the consumers about the high gas prices are getting louder as we struggle to fill our tanks. It was welcome news that the government had decided to yield to public pressure and reduce the tax to the ad valorem portion.
This means we will pay approximately five dollars less at the pumps. I will take any ease to my pockets but is it enough?
The reduction seems like a quick fix to the problem at hand but what’s your take on the issue? Rev your engines and leave a comment!
Teri Ann Renee Paisley (Gleaner on-line writer)
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24 Responses to “Gas tax reduction – Is it enough?”
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Paper or plastic? How has Jamaica benefited?
7 ways to live Green!
Pet Care Basics – How to keep your pet healthy!
10 things to consider when buying a car!
Delivery options – Navigating the shipping world!
Rolling with the punches! Businesses need to reinvent their products and services.
Getting to the meat of the matter! Are vegetarian consumers being accommodated?
Making financial goals that are attainable!
The do’s and don’ts of using social media!
How to enjoy your ‘staycation’!
THAT GAS TAX REDUCTION is definiotely TOO much.
IN the USA, UK, CANADA, the governments DO NOT reduce the TAX not even a 1/4%. OUR prices here at this moment are FAR HIGHER that what Jamaicans are paying. WHERE must the government get the necessary cash for all the amount of road improvenments they are undertaking at the moment in Jamaica? Remember that EVERYONE in these countries PAY their FAIR share of TAXES, but in Jamaica, WE doubt if 50% of the popoulation pay any tax at all.
JAMAICANS you all SCREAM, BAWL, MOURN and complain so much, that we don’t BELIEVE GOD our Almighty to do things to satisfy many of you. Government, should not REDUCE any further the gas tax. WE are feeling it here, but we are holding on. GROANING and bearing it.
I agree with a lot of what Winston says BUT in those countries except perhaps the USA where the traditionally cheap price of gas has lead to an obscene use of the commodity over the years, there is access to a social back up system.In ja the gas hike affects everyone but especially the poor and low paid.It rolls over everything taxi fare, freight everything. A better way surely would be to adopt the system which Spain once had where on essentials (gas, cooking gas, flour, kerosene etc) when the world price rises the tax reduces: ergo govt gets same tax because it is a % and the price remains stable.They need to stop calling the tax “plus valorum” too.
The truth be told, we here In Jamaica want to have our cake and eat it too. The pain at the pump affects us deeply, but should serve as a wake up call that what has been our aspired preferred mode of transport; the private car/suv is not quite sustainable.
Govt, in applying this tax with the objective of accessing funds for road repairs, is not so innocent as they are also seeking a “cash cow” source of revenue; knowing fully well that Jamaicans are mentally tied to the idea of private transportation as a yardstick of personal socio-economic status.
Is it at all possible that steps can be taken by the state to implement an effective, humane wider public transport system? Route taxis which are neither sustainable nor respectful of the general public and wider society, should be substituted for a network of scheduled rail and bus links.
The key question is if the will exists, in Jamaica, to make such a step as petroleum becomes more scarce?
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I cant rev my engine, it would burn too much gas!!
Okay Ryan I get the point! Hopefully you will be able to rev your engine in the future when gas prices are not so high!
Thanks please keep visiting my little corner!
I hear you countryman. Hope others hear you too!
Winston you first need to get your information correct. Jamaica is one of the highest taxed country in the world. The advolorium tax on gas which has been reduced from 15% to 10% is paid in addition to an already 15% special consumption tax (SCT) on this same fuel. The price of fuel in the state don’t attract that level of taxation, and as such is significantly cheaper. Let’s do the maths a liter of fuel in Ja is $120, hence the cost of 1 us gallon is $456.00.
Equivalent $ 5.31 USD. Do you pay more than this for gas you fool?
The next thing regarding road repairs, only 15% of the money collected via the gas tax goes to fixing the road. This goes contrary to what was promised when the gas tax was being introduced. Thirdly, one must understand that increased taxes does not necessarily means increased money to the government, if people can’t pay it then the government will actual receive less. The country GDP has decrease for the last 14 quarters despite the increased taxes. Regarding the fact that Jamaica don’t pay taxes. Jamaica consumption tax of 17.5% is one of the highest on the world. Everyone pays GCT you simple cannot go to the supermarket abd refuse to pay your GCT. Paye is some time not paid by doctors,lawyers etc But I an fire it is not as wide spread has most of is think it is.
Well said, Countryman !! Well said !!
Winston, there wouldn’t have been a real reason for the government of the mentioned contries to reduce taxes on gas since they have not increased taxes on gas in recent times. The 15% advolorium and 15% SCT was increased effected in the last 2 years. This is what the people of this poor country want to be rolled back.
As it relates to the price of gas, jamaican pays $120 per liter for gas. which is equivalent to $ 456 per us gallon, equivalent to US $ 5.31 per gallon. I am sure you dont pay more than $4.00 per gallon. So it is incorrect for you to say gas prices are higher in the USA. It is actual much less. Please also note that Jamaican have not received a pay increased in the last three years.
With only 15% of the new tax on gas going to road repairs it is hardly fair to say ordinary Jamaicans are benifiting from these taxes.
Please note that increased taxes does not necessarily equate to increased money going to the governemnt. This is evident over the last three years where the country GDP has reduced for the last 14 quarters despite the increases in taxes.
We need to have a comprehensive transportation policy shift.It is ridiculous to be pushing for better public transporation while importing an abundance of used cars into the country and then complain about our fuel bill. I also think it is highway robbery to have the additional tax on diesel the same as gas. Truckers get on an average 5-7 miles per gallon from heavy duty trucks that are used for productive purposes. Cars on the other hand,25-35 mpg. Do the math!!! Truckers have to be paying 5 times more to travel the same distances.
Only a foolish and selfish government tax their way into prosperity! The government and the private sector must find way to produce. More Tax simple mean people will be spending less = less money for the country!
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