Grenada reintroduces Petrol Tax Rate
Key Points(5)
- The Grenada government has reinstated the Petrol Tax Rate that had been suspended in September last year resulting in an additional EC$3.50 (One EC dollar=US$0.37 cents) being added to every gallon of petrol sold as of Wednesday.
- Signed by Prime Minister Dickon Mitchell, who is also the minister for finance, the Order gives him the authority to adjust the petrol tax rate without seeking Parliament’s approval.
- Under the petrol tax legislation, only the importers are required to pay petrol tax.
- The retailers buy at the wholesale price inclusive of petrol tax, add their margin and sell to buyers.
- Petrol tax revenue is the third largest income for the government.
The Grenada government has reinstated the Petrol Tax Rate that had been suspended in September last year resulting in an additional EC$3.50 (One EC dollar=US$0.37 cents) being added to every gallon of petrol sold as of Wednesday.
“There shall be charged and paid by an importer of petrol to the Comptroller of Customs a tax of three dollars and fifty cents on each gallon of petrol imported into the State for local consumption,” according to the Statutory Rules and Orders notice, published in an extraordinary issue of the Government Gazette.
Signed by Prime Minister Dickon Mitchell, who is also the minister for finance, the Order gives him the authority to adjust the petrol tax rate without seeking Parliament’s approval. Under the petrol tax legislation, only the importers are required to pay petrol tax. The retailers buy at the wholesale price inclusive of petrol tax, add their margin and sell to buyers.
Petrol tax revenue is the third largest income for the government. According to the 2023 estimates of revenue and expenditure, the government has projected it will earn more than EC$45 million in petrol tax for the year 2023.
The increase in petrol tax is one of several tax or levy measures that will be enforced during the first quarter of 2023.
Effective February 1, 2023, there will be an increase in the excise tax on alcohol from EC$1.10 and EC$4.40 per liter to EC$1.50 and EC$5.00 per liter respectively, and the excise tax on cigarettes from 105 to 200 percent.
The authorities will also from February 1, enforce the increase in the value added tax (VAT) on carbonated beverages, soft drinks/sodas, and drinks with high sugar content from 15 to 20 percent; reinstating the environmental levy rate on electricity consumption and on water use.
Government offices will also be adapting to a “no-printing of more than five pages policy” across the public service on February 1.
CMC/
