Speaking in parliament on Monday, Prime Minister Ralph Gonsalves said domestic electricity consumers would be given some financial relief over the next three months.
There are just a few consumers who will have to pay Value Added Tax (VAT) on their electricity bills for the months of July, August, and September, according to Gonsalves.
St. Vincent Electricity Services (VINLEC) in release on Tuesday stated “the cost of fuel associated with the production of electricity during the month of June remained high, resulting in the company paying approximately $9,000,000 once again for fuel used in generating energy. This has resulted in the calculated fuel surcharge rate applicable on July’s bill to be $0.7259 per kWh.
Given the foregoing and the recognized potential impact such a rate will have on the electricity bills for residential customers, the Government has made the decision to expand the exemption on the Valued Added Tax (VAT) threshold from 150kWh to 250kWh for domestic customers.”
VINLEC says this effectively means that all units consumed up to 250kWh per month (by residential customers) have been zero rated for VAT for the three-months for the period July to September 2022 and therefore no VAT will be charged thereon.
The Company in their release said they continue to monitor matters relating to the electricity industry globally, while also encouraging customers who can to conserve electricity, as this will assist in mitigating the impact of the high monthly fuel cost.
