PM: No VAT on fuel surcharge

Prime Minister Dr Ralph Gonsalves has dispelled rumors that Value Added Tax (VAT) will be charged on the fuel surcharge on electricity bills.

Speaking at a press conference held at the St. Vincent Electricity Services (VINLEC)’s office in Paul’s Avenue on May 15, Dr Gonsalves said that the announcement by VINLEC that the highest ever electricity consumption had been recorded in April may have people believing that it was because of the newly introduced VAT, but urged Vincentians to study their bills carefully.{{more}}

The Prime Minister said for domestic electricity bills, in addition to there being no VAT on the fuel surcharge, for the first 200 units there was no VAT charge. He said this was much better than the energy policy for Dominicans, who not only paid VAT on their fuel surcharge, but only had the first 100 units tax free.

With the high cost of fuel, the Prime Minister encouraged Vincentians to invest in energy saving appliances, which might be more expensive upfront, but in the long term consumed less energy.

He said the Cuban government supplied this country with 332,133 energy saving bulbs and so far 166,112 have been installed. The nation’s leader said that with the remainder, 62,730 were reserved for the mainland while 12,138 were set aside for the Grenadines.

Dr Gonsalves thanked the government and people of Cuba for their generosity, noting that Australia and the state of California no longer used incandescent bulbs and the European Union was trying to ensure that their people also use only energy saving bulbs.

The Prime Minister said besides helping to install energy saving bulbs, the intention of the project was to help youngsters from both countries bond and socialize hence the reason locals were also assisting.

He said while there was VAT on the incandescent bulbs, none was placed on the energy saving ones.

The leader mentioned that he would also love to see the private sector venture into the energy sector since there would be a greater need for electricity especially with major projects such as the international airport in the pipeline. (SG)