Ad Valorem Gas, 10 percent GCT on Electricity and Alternative Energy - Night and Day

When our vices leave us, we flatter ourselves with the credit of having left them

La Rochefoucauld, Maxims, 192

The recent flare up in the Jamaican public over the price of petroleum at the pumps on Monday almost became disastrous when plan of organized protest action were being bandied about by the Opposition PNP (People’s National Party).

However, the Prime Minister Bruce Golding-led JLP (Jamaica Labour Party), which is majority arm of the Government of Jamaica, apparently bending to public pressure, conceded the point and rolled back the ad valorem Tax on Motor Vehicle Fuel (“Value Added” in Plain English folks!) from its 15% to 10% on Tuesday April 12^th 2011AD.

A political coupe de etat (more fancy language people!) for the PNP, I would imagine, scoring a few points by appearing to be concerned for the welfare of “poor” Jamaicans.

In fact, quite the opposite! 

It shows a lack of concern for the future development of efficiency and reduced dependence of Jamaica on Imported Oil in the New and Used Car Industry as I had previously asserted in my blog article entitled “Jamaican Gasoline Prices and Transportation Future – Solaris”.

All that noise for a temporary decrease of 5% that would shave a few dollars of the price of 87 Octane 90 Octane and Diesel fuels as stated in the article “Gas Tax Rollback - Government of cuts petrol prices PNP calls of protest”, published April 12 2011 Edmond Campbell, Senior Staff Reporter, The Jamaica Gleaner and corroborated by the article “Protest off - Government cuts ad valorem tax on fuel”, published Tuesday, April 12, 2011 by Ingrid Brown, Senior Staff Reporter, The Jamaica Observer.

It will have to be re-implemented as soon as the world Oil Prices return to pre-Libya conflict levels and the 5%.

Such is the sticky political tightrope that politicians have to walk. Meanwhile they have to find additional funding for the budget (or their pocket money that they take from the Budget!), even as the PNP is baying for a fixed ad valorem Tax on Motor Vehicle Fuel and even the removal of the 10% GCT (General Consumption Tax) on Electricity.

I personally take offence, however, at this last idea of the PNP from a purely scientific and engineering point of view, NOT in support of our sole PUC (Power Utility Company), JPSCo (Jamaica Public Service Company Ltd).

This as the 10% GCT on Electricity Usage is my suggestion, being as it is based on the concept of a Data Cap used by both Telecom Provider CLARO and Telecom Provider LIME.

It helps to raises taxes to fund the Government of Jamaica by imposing caps on the wasteful usage of Electricity by Jamaicans much as Data Caps help to curb heavy Data Usage on Telecom Provider Networks.

By “Taxing” this bad behaviour, it encourages Jamaicans to change their Electricity Usage habits and conserve and adopt Energy saving strategies. Much as tickets by the Jamaican Police help to curtail the deaths on the road and earn Taxable Revenue for the Government of Jamaica as stated in per my blog article entitled “Motorists, NRSC and the New Traffic Ticket System - Nowhere to Run”.

Hence the reason why the Prime Minister Bruce Golding-led JLP (Jamaica Labour Party) cannot logically budge: it, like Traffic Tickets, contributes a sizeable amount to the Government of Jamaica Tax coffers.

If anything, the 10% GCT (General Consumption Tax) on Electricity should be increased to 20%. Then the Import Duty on Solar Panels, Solar Water Heaters, Wind Turbines and technology associated with Alternative Energy should be repealed by 20% equivalent.

This  to encourage the adoption of Alternative Energy by Jamaicans under a Net Metering Scheme as detailed in my blog article entitled “Japan, Jamaica’s OUR and Net Metering - When Disaster Strikes Don't Hold It Against Me”.

Strategies such as buying Solar Panels, Solar Water Heaters, Wind Turbines and technology associated with Alternative Energy and the use of fluorescent lighting should be a natural part of our habits when it comes to using this most prized of Utilities.

Or even simply (and most effectively!) unplugging appliances or putting appliances on a switchable Surge Power Bar or Power Cord Extension which you can turn off (highly recommended!!) when not at home to avoid “Vampire Draw” of Electricity by appliances, possibly the biggest contributor to householder’s Electricity Bill.

Even better: go off the Grid and make money reselling power generated by your alternative Energy Rig under a Net Metering scenario as per my blog article entitled “ Alternative Energy and Residential Solar Power - The Social Network” and the follow-up article “Japan, Jamaica’s OUR and Net Metering - When Disaster Strikes Don't Hold It Against Me”.

Energy Sector Liberalization is eventually guaranteed if Senator Philip Paulwell, Opposition spokesman on IT and Telecoms were to succeed in his Nuclear Power Gambit per my blog article entitled ‘Nuclear Power and net Metering - Paulwel's Energy Sector Liberalization Chess Game”.

Especially as the importation of All-Electric Vehicles and Flex-Fuel Vehicles would add significantly to the base load of Electricity usage from our sole Power Utility Company JPS Co (Jamaica Public Service Company Ltd) if the Import Duties on four (4) year old All-Electric Vehicles and Flex-Fuel Vehicles were removed as suggested in my blog article entitled “Alternative Energy and Jamaican Policies on Vehicle Importation - Gattaca”.

Ditto too on the seemingly much ignored issue of the ruling JLP and the Opposition PNP need to come to a consensus in the upcoming Budget the large scale conversions Motor Vehicles to use LNG as stated in my blog article entitled “JUTC, Challenger and LNG - Journey to the Center of the Earth” and the development of the Bio-Fuel Sector as stated in my blog article entitled “Alternative Energy an Diesel Sulphur content - Casino Royale”

All this signals that the Government of Jamaica, both Debates, (hopefully another Manatt Enquiry Part Deux?) on the long term implementation of the above chronicled strategies to curbed our Dependence on Oil.
 

1. Net Metering and Consequently Energy Sector Liberalization
2. Importation of Technology used for Alternative Energy
3. Importation of All-Electric Vehicles and Flex-Fuel Vehicles
4. LNG Importation and wide-sale usage in Motor Vehicle Transport (Public and Private)
5. Bio-Fuel Sector development

This as the above will help the Jamaican Economy to wean itself from a dependence on Oil, much as President of the United States of America, Senator Barack Obama, is on track to achieve.

That is, should he win at the polls and be re-elected for a Second Term in Office as pointed out in my blog article entitled “Obama and Dr. Pell's Moon Express - Fly Me To the Moon, I'll Drink To That”.

This would also make Jamaica us more competitive in Manufacturing and all other Sectors of the Formal Economy dependent on Electricity, a problem as obvious and as simple to solve as “Night and Day (1946)”.