The government’s earlier decision to cut fuel excise tax to 50 per cent allowed drivers to avoid higher petrol prices.
This is according to Prime Minister Dr. Ralph Gonsalves, while speaking on radio earlier this week.
“Well I just want people to know, where gasoline is now $15.35 a gallon, the real price should be $16.85, but the excise tax cut it by $1.50. So, on every gallon of gas you buy, the government loses $1.50.”
Dr. Gonsalves said that the government also $1.05 a gallon on diesel.
The Prime Minister said that this has eased the burden on the individual consumer.
Minister of Finance Camillo Gonsalves on May 3rd, said that all taxes paid on a gallon of gas or diesel have now been reduced to 9 percent.
According to the Finance Minister, halving the tax would cause the government to lose over three million dollars in revenue over the next three months.
