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‘RECKLESS’

Vaz dismisses Golding’s call to remove hedge fund gas tax

Published:Tuesday | October 24, 2023 | 12:11 AMKimone Francis/Senior Staff Reporter
Transport Minister Daryl Vaz.
Transport Minister Daryl Vaz.
Opposition Leader Mark Golding.
Opposition Leader Mark Golding.
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Transport Minister Daryl Vaz has roundly rejected as “fiscal indiscipline” suggestions from Opposition Leader Mark Golding to remove the hedge fund gas tax and cap the special consumption tax (SCT) on fuel amid blinding inflation, labelling him a “political despot”.

Vaz said Golding’s proposal, which he likened to economic policies of the 1990s, is an attempt to score “cheap political points”.

Golding, while at a People’s National Party (PNP) rally in St Mary on Sunday, slammed the Government for the economic hardship facing some Jamaicans, pointing to the 35 per cent fare increase for transport operators.

The twofold increase saw fares going up by 19 per cent on October 15. This will increase by a further 15 per cent in April next year.

“We have a Government that, after two years of wicked inflation coming out of COVID, what them do? They raise up the taxi and bus fare on the people,” Golding told PNP supporters.

He said while it was evident that transport operators needed an increase, the Government failed to find a “creative” way to ease the economic pressure facing Jamaicans.

Golding said Jamaicans, especially in rural areas, are struggling with increasing cost of living, with many parents unable to send their children to school.

“Why they don’t remove the hedge fund tax and use that to subsidise rural public transportation? Why don’t they cap the SCT tax on fuel and use the surplus to protect the consumer, the commuter, the person using public transport?” he questioned.

The controversial gas tax of $7 a litre was introduced in 2015 as a cushion against sharp increases in world oil prices above US$80 a barrel.

The Government collects approximately $7 billion annually from this hedge fund tax, though it has not been used for the intended purpose.

“This Government is not thinking creatively in the interest of the people. They are too willing to unleash sufferation on the people and that is why the people want to see change,” Golding charged.

SEEKING TO GAIN POWER

The PNP president has repeatedly implied that the economy is too tightly wound.

But on Monday, Vaz hit back, insisting that Golding was merely seeking to gain power at all costs.

He said Golding’s proposal is an attempt to pull the country back to the economic policies of the ‘90s, which he suggested were harmful.

“Not to mention his downright irresponsible, reckless statements repeatedly on the political platform,” said Vaz.

He said the increase in fare was done only after a working group was put together to deliberate on it and other “pressing issues” in the transport sector.

Vaz said Opposition Spokesman on Transport Mikael Phillips was a part of that group and was “fully aware” of what was the outcome of fare increase discussions.

He noted that the announcement was made in Parliament and said that there was no objection from the parliamentary Opposition.

Vaz also said it has been a week since the first phase of the increase took effect and that, to date, the Opposition party has not issued an opposing statement.

“Now, here comes Mark Golding, on the political platform. A political despot likened to the socialist ‘70s; power at all cost,” he said.

“ ... We are working assiduously to bring back discipline and order in the transport sector and instead of commending the Transport Authority and the police for what they have done over the last week, the only thing he can do is try to score cheap political points,” Vaz contended.

kimone.francis@gleanerjm.com