JPS to pass on fuel tax to customers

by March 15th, 2017

Light and power company, the Jamaica Public Service says, it is not able to forecast the effect of the increase in the gas tax, at this point.

The increase in the gas tax came into effect, today (Mar 15).

Finance Minister, Audley Shaw, announced the increase in the special consumption tax on fuel, ranging from 43c to $7.36.

According to the schedule of the Finance Ministry (JPS) will be required to pay an additional $1.52 per litre of heavy fuel oil.

JPS has already indicated that the increase in the cost of fuel will be passed on directly to the customers.

Additionally, the threshold for the application of General Consumption Tax (GCT) in relation to the consumption of residential electricity is to be reduced from 350 kilowatts per hour, to 150 kilowatts per hour, per month.

This measure is to take effect on April 3.

According to the light and power company, the average use of electricity is one hundred and 55 kilowatts per hour, with customers paying US 27 c per kilowatt at present.

In making the announcement Finance Minister Audley Shaw says 60 percent of the total population of customers of JPS or 323,000 residential customers will not be required to pay the tax.