Wednesday, March 24, 2004

Ja: Tax the end user

A SUGGESTION has come from the Office of Utilities Regulation (OUR) that Government free Jamaica Public Service Company (JPSCo) from paying tax on its oil bill, and recoup the $770 million instead from the utility's customers.

OUR Director-General J. Paul Morgan, speaking in Mandeville yesterday, said he subscribed to the view that it was not good policy to tax the inputs to means of production, but to tax the outputs.

He suggests that Government add General Consumption Tax (GCT) to light bills instead of taxing the supplier of the service, arguing that it would result in cheaper fuel charges and save customers money.

Last night JPSCo said it was not averse to the proposals, and had broached similar suggestions to the Government in the past, but got no response.
Yes, indeed, taxing the user will save him money. These guys need to learn a lesson from American businesses which shrug at the taxes and pass them on to the consumer anyway.

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