Jamaica Gleaner
Published: Friday | January 23, 2009
Home : Letters
Bad gas-tax proposal
The Editor, Sir:

I would like to respond to Donald Duff's 'Case for a higher gas tax'. I was shocked by his endorsing this proposal to put more tax on gas.

I'll assume Duff does not own a motor vehicle and therefore has no idea what it costs to run one, especially a recurring cost such as petrol.

I'll counter his agreement for the imposition of any additional tax on gasolene with the following:

Arguments

a) There is no guarantee that this round of lower prices will last.

b) Petrojam is already absorbing some of the savings that could have been passed on to the consumer, and consequently the Government derives some benefit from this windfall.

c) There is no guarantee that this tax will go solely towards road maintenance, as we know has happened to a lot of dedicated taxes in the past.

d) We're already paying high motor vehicle licence and other fees that should go towards road maintenance, which (can and) is almost adjusted every budget year.

e) When prices climb to the 2008 high or higher, I'm sure this tax will not be rescinded.

f) Higher prices will reduce some consumption but it will cost us all dearly.

g) Increase in gas prices mean increase in transportation costs and ultimately inflation.

h) A lot of us have no money to buy a fuel-efficient vehicle at this time.

i) The Government may do so at its peril, if it has forgotten how this country was almost burned down in the 1999 gas riots.

The already overburdened consumer cannot afford any increases in either goods, services or taxes at this time.

I am, etc.,

GERALD CAMERON

gerald@dlinkcorp.com

Kingston 19

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