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LETTER OF THE DAY - Why Gov't should ease taxes
published: Friday | July 18, 2008

The Editor, Sir:

The recent increase in toll rates, prices at the gas pumps and increases in the cost of just about all other goods and services have caused the budgets of most households to be stretched to the limit. It seems that there could be some indication from government that it wants to help ease the burden on citizens by reducing their taxes on diesel and petrol.

Currently, government gets $7.356 per litre on 87 octane; $7.729 on 90 octane and $6.664 on diesel. Since the recent tax amnesty has resulted in much larger tax revenues, could the government not consider reducing the tax revenue on diesel fuel to make it easier on the commercial vehicles that transport goods and services? This would give the operators a break and they would not have to increase their delivery charges; which would then slow the increase in the cost of goods and services.

Toll increases

When one considers that the toll rates have been increased by approximately 30 per cent, it is doubly hard on everyone, but more so on haulage units. The resulting return to the bypass roads will also increase the use of fuel and that will have adverse effects on the oil import bill. The shortsighted decision to raise toll rates at this time needs to be revisited. Rolling back the charges would result in a net gain for the toll operators and also reduce the use of fuel.

Problem of the pumps

There is another concern. If the price of diesel exceeds $100 per litre, most diesel pumps will not be able to compute the sales; this will create hardships on the service stations. There has been quite some concern as to why the price of diesel has increased above premium gasolene. There was a time when governments encouraged the use of diesel for being environmentally friendly. Now the owners of these units feel betrayed by the large increase in prices at the pumps. We would like to hear the rationale for this as prices are usually higher in winter months.

I implore the minister of energy to make some effort to help the motorists through these tough times. Consider the impact on workers who drive into Kingston from Mandeville or Old Harbour every day. I remind government that any increase in the cost of transport touches all aspects of the economy.

I am, etc,

A. GUY MORRIS

Duncans Bay, Trelawny

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