Reduction of GCT on electricity an election gimmick, says Paulwell

 

Opposition Spokesman on Mining and Energy, Phillip Paulwell, has criticised the government's recent decision to reduce the general consumption tax (GCT) on electricity, labelling it a gimmick designed to sway public opinion ahead of the upcoming general election.

 

Mr. Paulwell argues that this move is a strategic ploy to distract voters from the government's shortcomings and failures in managing the economy. 

 

He contends that such tactics are indicative of a government desperate to maintain power rather than a genuine effort to address pressing issues. 

 

"They are signalling belatedly the importance of energy to growth, and the fact is that Jamaica has not grown largely because the energy policy that we had left there was discontinued. And all of a sudden we are hearing the minister now speaking about a number of initiatives. I believe the issue of GCT on electricity is really a three-card trick because those persons who were using electricity up to 150 kilowatt-hours, they weren't paying GCT. We had removed GCT from their payment. Today it is now applicable, and while the government has given a temporary reprieve, we believe that is just because of the election. Right after the elections, if they were to win, then GCT is back on for the majority of poor people," he suggested. 

 

Mr. Paulwell pointed to the oil deal struck with Trinidad and Tobago last year as a positive step for Jamaica, but lamented that the government's indecision has led to significant financial losses for Petrojam, the state-owned oil refinery. 

 

He highlighted that for the first time in many years, Petrojam reported losses amounting to millions of dollars, a situation he attributes to the government's inability to effectively capitalise on the deal and navigate the complexities of the energy sector. 

 

Effective May 1, GCT on electricity charges for residential customers was cut from 15 to 7 per cent.