GCT cut on electricity for residential customers takes effect

 

The previously announced reduction in the General Consumption Tax on electricity charges for residential customers took effect Thursday.

 

Prime Minister Dr. Andrew Holness announced the pending cut from 15 per cent during the governing Jamaica Labour Party's annual conference last November.

 

Finance Minister Fayval Williams, during the opening of the annual Budget Debate in Parliament in March, said the move to restructure GCT on electricity bills was part of efforts to reduce electricity costs in Jamaica.

 

Winsome Callum, Director of Corporate Ccommunications at JPS, says the most significant change is that customers will be paying a reduced GCT rate of 7 per cent.

 

"Previously, postpaid customers of JPS paid 15 per cent on usage above 150 kilowatt hours. With the change, the 7 per cent GCT will now apply to all usage. There is no demarcation anymore with regards to a zero-rated usage. It's 7 per cent applied across the board. Some customers will actually see reduction in their bills as a result of the 7 per cent GCT replacing the 15 per cent GCT," she noted. 

 

Ms. Callum said prepaid customers will also see 7 per cent GCT on their top-up amount. 

 

Postpaid customers will see the reduced rate reflected in their bills next month.

 

Meanwhile, in a letter to its customers, JPS said residential customers who use 250 kilowatt hours of electricity or less for the billing period will receive a 3 per cent government tax subsidy and a 7 per cent government tax rebate.

 

The rebate and subsidy will be shown in separate line items on the bills.