
Prime Minister Bruce Golding (right) welcomes Canadian Prime Minister Stephen Harper to Jamaica shortly after both leaders landed at the Norman Manley International Airport yesterday. Harper and Golding were returning from the Fifth Summit of the Americas which was held in Trinidad and Tobago. Harper is on an official visit to Jamaica. In the backround are (from left) Canadian High Commissioner Denis Kingsley, Chief of Defence Staff Major General Stewart Saunders, Police Commissioner Rear Admiral Hardley Lewin and senior medical officer in the Ministry of Health, Dr Marion Bullock-Ducasse. - Rudolph Brown/Chief Photographer
CONSUMERS could be forced to pay $10 more per litre of petrol at service stations as Government pushes along with plans to apply a cess on fuel.
Government insiders have said Finance Minister Audley Shaw will definitely unveil the details of a fuel cess when he opens the Budget Debate on Thursday.
"It is not a matter of if, it is a matter of how much. We are definitely going to role the dice on this one," a senior government source confirmed last night.
The governing Jamaica Labour Party has scheduled a press conference for this morning to discuss matters related to a 'speculated' gas tax.
Transport and Works Minister Mike Henry had floated the idea of a gas tax as a means of raising funds to do capital projects such as road repairs.
Members of the Government have said that every dollar applied as a cess on fuel will earn the Government $1 billion in revenue.
The source said Cabinet was still to make a decision on the weight of the cess but stressed that, while bravery was required in taking the decision, Government would not back down.
"It will be a win-win situation despite the fact that political parties have used it to their benefits," the source said. "We can't play the politics, we have to take the hard decisions.
"We are a responsible government. We know the challenges that face us; we know that this Budget will be the most difficult in the history of the country to finance and, as such, we have to do what we have to do in the interest of the country so that when the world comes out of this recession, we will be poised to benefit."
Part of the funds will be used to improve much-needed infrastructure such as roads
In April 1999, riots across the island forced the P.J. Patterson-led People's National Party administration to role back an ad valorem tax which would have tripped in once the ex-refinery price of petroleum exceeds the floor price per litre.
daraine.luton@gleanerjm.com