Ross Sheil, Staff Reporter

The Consumer Affairs Commission (CAC) will next week begin clamping down on retailers illegally charging GCT on otherwise exempt energy-saving products.

Phillip Paulwell, Minister of Industry, Technology, Energy and Commerce, acknowledged this week that the Government needed to do more to inform the public of the exemptions after being informed by The Gleaner that retailers were charging customers GCT on energy-saving bulbs, or compact fluorescent lamps (CFLs). Checks with retailers and consumers revealed what seemed to be complete ignorance about the issue.

"We are just putting together a survey to check if this practice is continuing and we will be going out on the road in the coming week," said CAC Chief Executive Officer Dulcie Allen. Mrs. Allen said that all 30 energy-saving devices granted GCT exemptions would be included.

Acting out of ignorance

However, she shared the view that retailers were most likely acting out of ignorance rather than deliberating charging the customer and pocketing the money. As one reader of this newspaper observed in an email yesterday, charging GCT may have cost retailers.

"It is actually the Government coffers that benefit as tax collected is to be paid over to them. The additional GCT only makes the item more expensive and less attractive for sale," he said. Contacted yesterday, the Tax Office said customers are entitled to GCT refunds from retailers; who are in turn entitled to claim back GCT paid to the ministry. Retailers who have pocketed the GCT are liable to be caught in audits of their tax returns by the Tax Office.

The products were granted GCT and import duty exemption last year as part of a government drive to reduce the increasing national energy bill with the national oil import bill rising to US $1.734 billion last year, up from US$1.335 billion the year before.

Mrs. Allen advised consumers to contact the CAC if they find GCT being charged on the products.

ross.sheil@gleanerjm.com