Increased taxes on petroleum will not put pressure on Guyanese – Finance Ministry

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gas station[www.inewsguyana.com] – The Ministry of Finance in an effort to clear up what it has deemed as misconceptions about the increase in excise tax on diesel and gasoline by Government in wake of the decrease on the world market says this adjustment will not put additional pressure of Guyanese, since it is still highly subsidized.

“Today as international fuel prices have dipped, the excise tax has been adjusted accordingly. It should be noted however, that the tax rates that are being applied continue to be highly concessional relative to the standard rate of 50 percent. When the world market price for gasoline and diesel increases the Guyanese public can be assured that the excise taxes will once again be reduced,” a statement from the Ministry of Finance noted.

It was noted that this mechanism is in place to ensure that consumers are cushioned from spikes in the world market price.

The release added that “the price consumers pay at the pump for gasoline and diesel has remained stable over recent years because this administration has made appropriate interventions by adjusting the excise tax rate. The ability of the GoG to stabilize the cost of diesel and gasoline has also ensured that the cost of production of goods and services that require fuel inputs does not adversely affect consumers.”

However, this move has been met with condemnation by A Partnership for National Unity (APNU).

A statement from the main Opposition noted that “The APNU condemns this action especially in light of the PPP/C Administration’s prorogation of the Parliament of Guyana thus shutting out the people’s voice; there should be no new taxation without representation.”

“APNU views the Cabinet approved increase of the excise tax on gasoline from 20 to 40 percent and diesel from 15 to 35 as unwise and uncalled for. ”

APNU believes that this continued taxation by the PPP/C will have a direct negative effect, increasing the costs of production in gold mining, manufacturing and other sectors that are heavily dependent on gasoline and diesel.

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