GCT Removed from Electricity Used by Residential Customers
June 6, 2012
Prime Minister, the Most Honourable Portia Simpson Miller, in her budget presentation yesterday announced the complete removal of General Consumption Tax (GCT) from the electricity used by residential customers. This reverses an announcement made earlier by the Minister of Finance that GCT would be applied to residential usage over 300 kWh. Business customers will still pay GCT on their electricity usage.
JPS is awaiting further details from the Ministry of Finance regarding the impact of GCT on related services, and will share this information with the public in due course.
In her presentation, the Prime Minister also spoke to initiatives to ensure a secure energy future for Jamaica, which she said was crucial and needs to be urgently addressed to enable the country to capitalize on opportunities. She made the following points:
1) Fuel Diversification: The Government is awaiting the outcome of bids and the associated negotiations for the provision of natural gas and the regassification infrastructure.
2) Renewables: Emphasis will be placed on the use of more renewables as well as waste and biofuels for generating electricity.
3) Conservation: The Government will be setting an example by implementing projects to reduce energy use. The Government will therefore be taking the lead in the national conservation effort, with its goal being a 30% reduction in the energy bill. The Prime Minister indicated that the pilot project for the conservation efforts would begin at the Office of the Prime Minister.