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Leave the gas tax alone

Published:Wednesday | April 20, 2011 | 12:00 AM
Din Duggan

Bullet-proof vest? Check. Combat helmet? Check. .38mm pen and Moleskine writing pad? Check. An opinion that will, undoubtedly, draw the ire of many of my countrymen? Check.

Okay, I'm all set. Now, please, bring back the full gas tax - ASAP! Madam Opposition Leader, wait just one minute, put down the stone, and first allow me to explain.

I was once the proud owner of one of those gas-guzzling, crush-large-animals-in-a-single-bound, mine-is-bigger-than-yours SUVs. In fact, it was my dream car, except for when I pulled into Texaco - then it became a nightmare. Each time, without fail, I would be shocked and awed at the exorbitant cost to fill the tank. I complained at the gas station, I complained to my friends, and, occasionally, I complained to complete strangers. But one day, I can't recall when or where, I realised - perhaps later than most who know me - that I was an idiot.

Gas tax only a small part

I was grumbling and whining about high gas prices despite making a conscious and voluntary decision to drive a fuel-inefficient vehicle - a decision that itself contributed to high fuel prices. Yes, I'm completely cognisant of the fact that, unlike in my situation, many of those affected by high transport fuel costs - taxi and bus operators; their passengers; truck drivers - effectively have no choice but to bare these costs. They are practically helpless in the face of the gas-price monster.

The gas tax, however, is a relatively insignificant component of that monster. Instead of sowing seeds of indiscipline and stoking flames of discontent by threatening protests, responsible leaders should address the major culprit behind high gas prices - our insatiable appetite for foreign oil.

The price of gas in Jamaica is directly correlated to the price of oil on the world market. As a net oil importer, our gas prices are largely dependent on the global oil market. In the short term, there is very little we can do to impact the prices we pay at the pump. For the medium and long term, however, there are a number of courses on which we must embark if we are to overcome our crippling addiction to foreign oil. Otherwise, we might as well stop complaining and hop a flight to Saudi Arabia, take a taxi to the royal palace, remove our shoes, quietly enter, bow, and graciously hand over our hard-earned money to His Highness, King Abdullah.

More progressive measures needed

The recent ad valorem gas tax rollback - from 15 per cent to 10 per cent - will save motorists $4 or $5 per litre at current prices. That will do nothing to reduce the approximately $2 billion we spend importing oil each year. In recent years, our oil-import costs have exceeded our entire export earnings. It logically follows that instead of nationwide protests against the gas tax, we should, instead, begin a nationwide campaign to reduce demand for oil and increase supply of alternative and renewable energy.

Incentivising the purchase of fuel-efficient automobiles would be a fine start. Hybrid gas-electric vehicles should attract a more lenient import-duty schedule than regular petrol vehicles. Our leaders - both in Government and the private sector - should take stock of their own direct contributions to the problem. The irony of politicians merrily hopping out of gas-guzzling SUVs to lead protests against high gas prices should escape no one.

Broader measures are also needed. The city of Dania, Florida, implemented solar-powered street lights that collect energy from the sun throughout the day in order to light the streets at night. Many countries are phasing out incandescent light bulbs in favour of energy-efficient alternatives. Transit systems are increasingly turning to fuel-efficient commuter buses. Governments have installed solar panels to power schools and other buildings. If we are serious about an ambitious energy policy which aims to reduce petroleum consumption from the current 95 per cent to 30 per cent in the next 20 years, we should maintain the fuel tax - a key component of cutting demand - and focus on implementing solutions similar to the ones above. It is far time we put aside the red (and green) herrings and address the real issues.

So, Madam Opposition Leader, now that I have explained, I beg you, please, put down the stones and the sticks and the old-time politics.

Din Duggan is an attorney who now works as a consultant with a global legal search firm. Email him at columns@gleanerjm.com or dinduggan@gmail.com, or follow him at facebook.com/dinduggan and twitter.com/YoungDuggan.