It is being reported that the Minister of Transport Mike Henry has continued to push for the Government to impose a new tax on petroleum to repair and maintain the island's road network.
This proposal is obviously one of desperation that will drive up inflation in every area, affecting the price of everything from sugar to water, not to mention light bills, bus fares, books and anything that has to be purchased.
This measure would drive inflation to unprecedented levels and, any way you look at it, a gas tax now would not be good politics or economics.
Economic activity
In the face of wage restraints, a contracted economy, low levels of production and hopes of encouraging investments at all levels, why add another burden and disincentive in the mix by pushing up the cost of fuel that drives economic activity?
The population is already overtaxed and if you calculate your (PAYE) wages you may discover that more than 60 per cent of your salary has gone into various forms of obvious and hidden taxes. Find some other creative way, Mr Henry, but not an increase in the gas tax. The thrust to produce more fuel-efficient vehicles means in a few years the collections from gas tax will dwindle. A better way is to have a mileage tax instead which would reward drivers of more fuel-efficient and environment-friendly vehicles.
I am, etc.,
MICHAEL SPENCE
Micspen2@hotmail.com
Kingston 6