Jamaica Gleaner
Published: Friday | January 16, 2009
Home : News
No tax on gas - Thwaites

Thwaites

WHILE THE Government is considering imposing a tax on gasolene for road maintenance, one parliamentarian is warning against the move, which would force motorists to dig deeper into their pockets at the pumps.

Chief Executive Officer (CEO) of the National Works Agency Milton Hodelin told the Public Adminis-tration and Appropriations Committee of Parliament on Wednesday that a proposed tax on petroleum, in excess of $2 per litre, was being considered.

A recommendation was made in 2005/2006 that a tax of $2 per litre be imposed on gasolene. However, the CEO said: "We are reconsidering that it should be a little higher than that."

Central Kingston Member of Parliament, Ronald Thwaites suggested that the Government source money for road maintenance using another approach.

Individual retailers

"The money needed to fix the nation's roads (should) come from the petroleum company of Jamaica, opening their gates to the individual retailers, foregoing that pathway through the marketing companies," said Thwaites, who is a member of the committee.

He said the current price of fuel contained a margin of between four and 12 per cent to the petroleum marketing companies, even though no apparent value was added.

"Let them stay as rentiers and landlords, and that money be made available to your agency for the fixing of roads, without further cost to the public of Jamaica," Thwaites urged officers from the Ministry of Transport and Works.

The officers were appearing before the committee for the second time since last year.

Other measures being reviewed by the ministry to raise funds for road rehabilitation and maintenance are an increase in taxes on motor vehicle licence and the enforcement of weight limits for vehicles that are overweight.

Recommendations

Permanent Secretary in the ministry, Dr Alwin Hales confirmed that the ministry was working on recommendations for Cabinet to raise additional funds for road maintenance through the taxing of petroleum.

He said Thwaites' proposal should be considered by Cabinet.

On the matter of weight limits for large vehicles, Dr Hales said the introduction of scales would help the authorities to remove overloaded trucks from the roads and thereby extend the life of the road. Additionally, he said the Government could earn revenue from non-compliant motorists.

The transport ministry has ordered four fixed scales to be installed at Harbour View in Kingston; Agualta Vale, St Mary; Ferry in St Catherine and Montego Bay, St James. Two portable scales have also been ordered by the ministry.

The ministry has recruited consultants to do the design for the facilities.

Home | Lead Stories | News | Business | Sport | Commentary | Letters | Entertainment | Social | International |