by Linda Straker
- Petrol tax rate for importers is 0 dollars and 0 cents
- Tax Order published in 16 September 2022 edition of Government Gazette
- Policy will be reviewed in December 2022
As of 17 September 2022, the Government of Grenada removed all taxes on petrol. This means retailers and buyers will not be paying any taxes on petrol which is defined by law as gasoline and diesel, until the policy is reviewed in December 2022.
According to a Petrol Tax Order which was published in the 16 September 2022 edition of the Government Gazette and signed by the Minister for Finance Prime Minister Dickon Mitchell, the petrol tax rate for importers is zero dollars and zero cents.
“There shall be charged and paid by an importer of petrol to the Comptroller of Customs a tax of zero dollars and zero cents on each gallon of petrol imported into the State for local consumption,” said the Order which was made by the Minister on 14 September 2022.
The Minister made the Order as guided by Section 4 of the Petrol Tax Act. That section gives the Minister for Finance the authority to adjust the petrol tax rate without seeking Parliament’s approval. Under the petrol tax legislation, only importers are required to pay the petrol tax. The retailers buy at the wholesale price inclusive of petrol tax, add their margin and sell to buyers.
“With the reduction in the Petrol Tax to $0.00 the government will not collect any petrol tax until this is amended. Under the cap, the statutory tax rate did not change, but the Government was applying fewer taxes to maintain the cap at $15,” explained an official at the Ministry of Finance.
The Government is expected to lose millions in petrol tax revenue until there is an amendment to the petrol tax rate.
In December 2021 the then New National Party (NNP) administration announced the EC$15 cap on fuel because of escalating prices on the international market. However, in recent months the price of fuel began dropping which in turn is resulting in lower prices in the local market.
Prime Minister Mitchell announced during a news conference on 13 September 2022, that if the price of fuel was to increase beyond EC$17 after the removal of the cap on 18 September, then Government would set a new cap of EC$17.
Loading...
Reload document 
Open in new tab 
