Georgetown: Government is set to announce the lowering of the excise tax attached to the importation of petroleum as public outcry pertaining to the high cost of fuel here, despite a sharp drop in oil prices on the international market.
President Donald Ramotar said he will be engaging his Cabinet and more specifically Finance Minister, Dr Ashni Singh to consider the taxes levied on the importation of fuel.
Cabinet will be meeting today. Government has come under criticism for its decision to raise the excise tax on fuel in keeping with a mechanism it had set up years ago.
The Administration may have missed an opportunity to bring relief to thousands of citizens.
“Could you imagine how wonderful it would be for persons to be buying gas at lower prices?” one consumer questioned.
Gas prices hit a five-year low of US$54.73 a barrel on the New York Mercantile Exchange on Friday, with retail gas stations selling at US$2.50 per gallon.
President Ramotar explained that in effect, what his Administration does is lower the excise import tax on fuel when the price for fuel is high on the international market.
When that price falls, the excise tax rate is increased.
As such, Government, in a notice to the Guyana Revenue Authority (GRA) instructed that under the Financial Administration and Audit Act, Cabinet approved increases of the excise tax on gasoline from 20 per cent to 40 per cent.Diesel was also raised from 15 per cent to 35 per cent.
If the excise tax levied on fuel is reduced, it would mean that Guyanese consumers can expect lower prices for fuel in the coming weeks – the realisation of something that has been too long coming.
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