Shaw

Dionne Rose, Business Reporter

Audley Shaw, minister of finance and the public service, says the Government will be removing the special consumption tax (SCT) on motor vehicles of 1,000 ccs or less.

The minister said the new policy was being implemented in an attempt to encourage Jamaicans to use energy-efficient motor vehicles.

"What we are going to put in place is a special programme where we are not going to charge any special consumption tax at all on motor vehicles of 1,000cc or less," he announced while addressing the GSB Cooperative Credit Union Limited's annual general meeting on Tuesday evening.

"Zero special consumption tax and, as the cc ratings go up, then you will see a higher and higher rate of consumption tax being applied to the vehicle. The higher the cc rating, the higher the SCT application to it."

Shaw said there would be a further 10 per cent reduction on diesel units of all types.

Conserve

The finance minister argued this was being implemented as part of the Government's drive to conserve on energy and reduce the country's fuel bill.

"Every step of the way we intend to put in policies that are going to be supportive of energy conservation," Shaw said.

Last year, the Government recorded a fuel bill of $1.79 billion as at November 2007, according to data from the Statistical Institute of Jamaica (STATIN), already outstripping spending for the entire calendar year of 2006 by more than US$152 million.

However, Shaw said it was time the country stopped giving "lip service" to energy conservation. He said the Government would be rolling out a comprehensive energy conservation plan later this year.

This, he said, would include meeting a target of 15 per cent energy reduction in all ministries.

"It can be done but it is not going to be done unless, as government workers together, we all buy into that model so that it can be achieved," said Shaw.

Energy czar

"We are going to put an energy czar in each ministry. (In) each agency there must be someone who is going to be focusing on targeting the energy conservation requirement of that particular agency or ministry or department.

Shaw said the Government would be making a minor revision in the motor-vehicle policy.

In his contribution to the 2008/2009 Budget Debate, Shaw had announced a "simplification" of the motor-tax regime to take effect May 1 - and projected to yield revenues of $985 million - replacing the "plethora of GCT rates" with a new structure under which import duties have been revised within a band of 10 to 70 per cent, depending on the range and type of petroleum-powered vehicle, plus a standard 16.5 per cent GCT.

"We are doing a minor revision of it right now that will be announced by Senator [Don] Wehby (minister without portfolio in the finance ministry) by the end of this week and be implemented as of Monday, the 12th of this month," said Shaw.

dionne.rose@gleanerjm.com