Further tax reduction on gasoline and diesel announced

MINISTER of Finance Dr. Ashni Singh yesterday announced a further reduction on the excise tax rates on gasoline and diesel following previous cuts made earlier this year. According to Minister Singh, with effect from yesterday, the excise tax charged on gasoline would decrease from 20% to 15% and the excise tax charged on diesel would decrease from 15% to 10%.
Minister Singh explained that this decision was taken in light of the upward movement in the imported cost of refined fuel products. The acquisition price on the last shipment of refined gasoline was US$135.60 per barrel, which is an increase of 24.7% above the price of US$108.72 per barrel at the beginning of this year. Similarly, the acquisition price of refined diesel of US$137.73 per barrel is 24.4% higher that the acquisition price of US$110.74 per barrel at the beginning of 2011.
The reduction of the excise tax rates on gasoline and diesel would therefore counter higher increases in the cost of production of goods and services and hence lower prices to the consumers.
The standard excise tax rate on gasoline and diesel is 50%. There is no excise tax on kerosene.
The Government would continue to closely monitor the acquisition cost of refined fuel products and would make the appropriate interventions by adjusting the excise tax rates in order to minimise any adverse consequence on the economy from higher fuel prices on the world market.

SHARE THIS ARTICLE :
Facebook
Twitter
WhatsApp
All our printed editions are available online
emblem3
Subscribe to the Guyana Chronicle.
Sign up to receive news and updates.
We respect your privacy.