PNP supports call for measures to reduce electricity cost to consumers

The opposition People’s National Party is supporting the proposed suspension of General Consumption Tax (GCT) on light bills and the Special Consumption Tax (SCT) on fuel to make electricity less expensive for consumers, in light of the coronavirus crisis.

The Jamaica Public Service Company (JPS), the country’s monopoly distributor of electricity, revealed on Saturday that it had made a proposal to the government for zero-rating the GCT for all bills for both residential and commercial customers.

The company said this would significantly reduce the cost of electricity to customers, most of whom are at home for longer hours as part of the COVID-19 containment measures.

Phillip Paulwell, Opposition Spokesman on Energy, told Radio Jamaica News that the government should immediately approve the request by the JPS.

"We welcome the fact that oil prices across the world have plummeted, and we await to see the pass-through to our consumers eventually," he noted, but nevertheless urged the government to adopt the relief measures proposed, as part of the national response."

Mr. Paulwell wants the taxes to be removed for an initial three months, arguing that the proposal, if accepted, would also bring relief to sectors of the economy which have already shown significant signs of distress and could grind to a halt.

Mr. Paulwell also wants the JPS to suspend disconnecting the service of delinquent customers during this crisis period.

The National Consumers League has also expressed strong support for the tax breaks.