The government’s earlier decision to cut fuel excise tax to 50 per cent allowed drivers to avoid higher petrol prices, according to Prime Minister Ralph Gonsalves.
“I saw in the newspaper that there are lots of articles discussing the rising gasoline prices. A few weeks ago, I said that the prices which are coming in, the imports of the fuel, will keep going up and I don’t know how long it will last.”
“Gasoline now costs 15.35 a gallon, but it should cost 16.85, but we cut the excise tax by $1.50, so with every gallon of gas our government loses $1.50. This was done in order to ease the burden on the consumer”.
In addition, Gonsalves said that the government loses $1.05 for every gallon of diesel drivers’ purchase.
“We have subsidized fertilizer, the love box is back in operation and there are some other measures to be considered by cabinet”, Gonsalves said.
Finance Minister Hon Camillo Gonsalves said on May 3 that all taxes paid on a gallon of gas or diesel were around 18 percent. These have now been reduced to 9 percent.
According to the Finance Minister, halving the tax would cause the government to lose over three million dollars in revenue over the next three months.
