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PNP Warns That Tax Measure Will Result In Inflation

Two prominent members of the People’s National Party have warned that tax measures announced Thursday by Audley Shaw to finance the $1.5 million personal tax-break promise will result in inflation.

“You should note that the JPS doesn’t pay taxes on heavy fuel oil. The government has imposed now a tax on both natural fuel gas that will arrive in August of this year, and on fuel oil,” Phillip Paulwell, the Opposition spokesperson on Mining and Energy, told reporters after Shaw’s announcement in Parliament.

“It means a significant increase in the price of electricity that has been trending down almost 50 per cent over the last year,” Paulwell said.

For his part, Peter Bunting said: “We will see an increase in transportation cost that will result from the $7 per litre tax.”

He said this will impact “everybody including those work under $600,000 per year, which is $50,000 a month”, who will now face increase in transportation cost and electricity cost”.

He added: “It is regressive in the sense that you are giving the persons at the very bottom of the society the burden to give the relief to those who are not at the bottom.”

Shaw announced new tax measures which include a $2 addition to the special consumption tax on cigarettes; a new special consumption tax regime on liquid natural gas (LNG); an increase in the special consumption tax regime on heavy fuel oil; an upping of the departure tax to US$35; and an increase from 25 to 30 per cent in the income tax rate for employees earning over $6 million per annum.

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