Give the agreed 50 per cent of fuel cess to Road Maintenance Fund

In renewing the Opposition's call for the capping of the ad valorem tax on fuel, and the rollback of the GCT on electricity bills, Portia Simpson Miller, the leader of the opposition, yesterday demanded that 50 per cent of the special consumption tax on fuel be allocated to the Road Maintenance Fund (RMF) as approved by Parliament.

"The Government told the people that the gas taxes are to deal with roads. The Government must keep its word and we intend to ensure that this happens. Mr Speaker, this is a fundamental issue of trust," Simpson Miller said.

Figures contained in the 2011-2012 Estimates of Expenditure indicate that the Government would not be increasing the proportion of the fuel tax to road maintenance.

Some $1.4 billion is budgeted to flow into the RMF from the special consumption tax (SCT) of $8.75 that has been applied to fuel.

Last year, the SCT contributed $1.5 billion to the RMF, while $1.8 billion was paid into the fund in the 2009-2010 fiscal year.

The finance minister had committed to Parliament that in year three of the tax, 50 per cent of the proceeds would be paid into the RMF to fix roads.

The proceeds from the tax have not increased above 20 per cent since it was instituted in 2009.