Watson

Jamaica's oil refinery, the Petroleum Corporation of Jamaica (Petrojam), has failed to pay over nearly $700 million in fuel tax and customs user fees to the Inland Revenue Department, a forensic audit of the company has found.

The audited report, a copy of which was obtained by The Gleaner last week, was handed over to Finance Minister Audley Shaw in June.

The money owed by Petrojam includes outstanding liability on special consumption tax (SCT) for the period April 27 to May 31 this year.

The report stated that of the amount owing for the period April 27 to May 31, the SCT com-ponent of $8.75 per litre accounted for $522 million, in addition to $177 million in taxes for inventory held, resulting in a total of $699 million.

accounting error

The Road Maintenance Fund, which was to benefit from 20 per cent of the $8.75 petrol tax, should have received $139.9 million of the $699.3 million in unpaid taxes.

Prime Minister Bruce Golding said on Television Jamaica's 'All Angles' on Wednesday night that the unpaid revenues resulted from an accounting error. He said that Petrojam has already paid over a portion of the money due and that a second payment will be made soon.

Yesterday, Petrojam's General Manager Winston Watson said he has not seen the report and was not in a position to respond to any questions arising from the audit.

"Until I read the report, I cannot comment on what I have not seen," Watson said.

The imposition of the $8.75 SCT on fuel and an imposition of the customs user fees on finished petroleum was budgeted to earn $13.32 for the Government this year.

Petrojam is required to pay the taxes and duty on these items, which are later remitted to them from the purchase of fuel at the pumps.

daraine.luton@gleanerjm.com