The nation exploded in revolt against gas prices. Several businesses and residents were destroyed in the riot. The Government responded by rolling back the tax by 50 per cent.

Published Wednesday, April 28, 1999

CONFIRMED!: PM rolls back gasolene tax by 50 per cent

By Carl Wint: Political & Current Affairs Editor

AS foreshadowed by The Gleaner yesterday, the Government has rolled back the existing tax on gasolene by 50 per cent as of today. The announcement was made in Parliament yesterday by Prime Minister P.J. Patterson.

On the matter of kerosene, the Moses Committee had recommended a rollback of 90 per cent, but the Government varied it down to 50 per cent. Mr Patterson said that if a differential were restored between the price of diesel oil and kerosene, the problem of misuse would return to the trade.

He reminded members that there would be:

- no increase in the cost of electricity,

- no increase in the price of cooking gas,

- and no increase in bus fares for children, the aged, and the physically handicapped.

Cost of the rollback is $1.4 billion

The prime minister said the Moses Committee recommended “a more aggressive approach to interes- rate reduction, but the calculations in the budget already represent a significant reduction in interest rates. We would welcome further reductions, but we cannot at this stage bank on it in our budget calculations."

Other recommendations, he said, were being studied by the Ministry of Finance. He added that recommendations from the KPMG and Orane reports were the subject of concrete steps being taken, and money had been put into the budget in accordance with what savings could be made. He promised further details when he makes his contribution to the debate next Tuesday.

Then, he said, he would also deal with job creation, poverty alleviation, education, health, and transportation.

’We are still faced with the daunting task of keeping this budget within the deficit target of four per cent of GDP,’ he said.

Referring to talk of a new parliament building, the prime minister said there was no provision for $700 million for it in the budget. It would have to be put on hold for the time being.

The Moses Committee suggested cutting the $9 million allocated for a competition for the building and another $33 million to be spent on Jamaica House and Vale Royal.

The prime minister said: ’The decision to establish this committee represents a major forward leap in our interpretation of the meaning of democracy. The real value of what has transpired is that it represents a further example of what can be achieved when good and patriotic Jamaicans work together to help Government to solve the country’s problems.’

Asked about those who had their property damaged during the demonstrations, Patterson said those who had a riot clause in their insurance policies would have been covered.

Others could be covered under the Riot Act but would have to make their claim within 21 days.

For those who did not qualify, he said the Government would have to determine the amounts involved and the cost to Government, before deciding how they could be assisted.

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