Excise tax on fuel now reduced to zero – Jagdeo

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In a move to ease the burden on the population amidst the rising cost of living, Vice President Dr Bharrat Jagdeo has announced that the excise tax on the importation of fuel will be reduced to zero.

“Excise tax on gasoline and diesel now reduced from 50% to zero,” Jagdeo announced today.

President Dr Irfaan Ali further posted on his social media accounts, “in response to the continuous increase in fuel prices on the world market, we have now reduced the excise tax on gasoline and diesel from 50% to zero.”

It was only last week that two major private sector bodies – the Georgetown Chamber of Commerce and Industry (GCCI) and the Private Sector Commission (PSC) – called for the removal of the excise tax altogether as a means of helping the population navigate these challenging times.

The prices for a wide range of commodities have significantly increased – such as fuel and flour with the National Milling Company of Guyana Inc (NAMILCO) announcing a hike of 15 per cent with immediate effect.

And though the government this year further lowered the excise tax rate on gasoline and diesel from 20 per cent to 10 per cent – which should have resulted in major savings at the pump – global events have sent the prices up, with gas now retailing as high as $246 per litre of gasoline locally.