Vaz Refutes PNP’s ‘Misinformation’ on Proposed GCT Reduction on Energy

Energy minister, Daryl Vaz, is refuting statements made by the Opposition People’s National Party, PNP, that the planned reduction in the general consumption tax, GCT, on electricity bills will only benefit the wealthy.

Daina Davy reports.

The reduction in electricity tax is expected to move from 15 per cent to 7 per cent after the next budget cycle in March 2025. The tax reduction is set to benefit those Jamaicans who consume 200 kilowatts or less in electricity per month.

Prime Minister Andrew Holness says the change is one of several to come next year.

However, since then, the Opposition PNP has sought to dismiss many of the plans as either poorly thought out or limited in their impact.

During a media briefing on Tuesday, the PNP dismissed the measures as a last-ditch attempt to drum up election support.

Opposition Leader, Mark Golding, further posited that the promised GCT reduction will only accrue to the wealthy and not those who need it.

But in a response on Thursday, Minister Vaz says the Opposition is seeking to spread misinformation.

He says the government will not relent in their mission to reduce the financial burden on Jamaicans while fostering a modern and efficient energy sector.

Minister Vaz also addressed what he called inaccuracies in the opposition’s statements that Jamaica’s energy mix in 2016 included 60 per cent Liquefied Natural Gas, LNG.

Vaz says in 2014, Jamaica was not the highest ranked country in the Caribbean for the World Bank’s “Doing Business” Index. He says the country has since progressed under the Holness Administration.

The minister says the statements made by Mr. Golding are false and are an attempt to rewrite history.

Citing the Jamaica Public Service Company, JPS’ 2016 Annual Report, Minister Vaz confirmed that LNG accounted for only 10 per cent of the electricity mix that year. 

He says in today’s society, LNG comprises 54 per cent of the energy mix.

Minister Vaz says the country is also advancing in its renewable energy projects, including the NWC Solar Project, which will soon supply electricity to JPS.