Mark Golding offers prescription for gas pain

Leader of the Opposition, Mark Golding, has drafted a proposal for the amendment in the regime governing the tax on gas.

Golding's plan proposes that the Government imposes a cap on the ad valorem special consumption tax on petroleum products where the oil price of Jamaica's purchases exceed US$67.50 per barrel.

The opposition leader said that oil is currently trading at more than US$100 per barrel on the international market, which is significantly higher than the US$67.50 per barrel, which he said that the national budget has been predicated on. He said that Jamaicans are forced to endure high fuel prices and called on the Government to implement his plan to help cushion the blow.

"The beauty of this particular solution is that because the budget was cast on the assumption of world oil prices at US$67.50 per barrel, capping the taxes derived from oil at that price would not adversely affect the fiscal accounts," Golding said.

In his letter to Finance Minister Dr Nigel Clarke yesterday, Golding said that the "inflation crisis is ravaging people's lives in Jamaica". He said that adapting his proposal would lead to a "meaningful break to Jamaican consumers, given the impact of gas prices on so many aspects of our lives.