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December 15, 2010
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Star News |
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GOV'T TAXES ENERGY DRINKS - Finance minister made announcement last night |
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The price of energy drinks which have become popular on the party scene may go up in the coming days after Finance Minister Audley Shaw last night announced changes to the so called sin taxes introduced at the start of the month. Shaw, who was making his contribution to the debate on the Supplementary Estimates in Parliament, announced a 15 per cent ad valorem special consumption tax on high caffeine/energy drinks. "Non-alcoholic beverages known as Full Throttle, Monster, Red Bull, Taboo, Xrated, Boom, Nitro and the like", were some of the brands Shaw listed in Parliament. The new tax takes effect today and is estimated to net the Government close to $60 million. At the same time, Shaw announced changes to the tax imposed on beers and stouts nearly two weeks ago. He said a revenue-neutral rate of $1,134 per litre will be charged on beers and stouts, replacing the special consumption tax of $960 per litre that was announced on December 1. Liquor company Wray and Nephew Limited came out against the old tax saying it would not ensure the collection of the much-needed revenues. Financial Secretary Dr Wesley Hughes agreed saying the change announced by Minister Shaw would put the tax back to the previous rate and would ensure that Government gets all the revenues. Opposition Leader Portia Simpson-Miller questioned the Government's decision to again announce new taxes in December, charging that the tax on energy drinks will amount to a cancellation of Christmas for most Jamaicans. "No matter how poor we are we love to provide for our families and sit and have a drink," Simpson-Miller said in her contribution to the debate. This is the second consecutive tax package Shaw has announced in December that he has had to revise. Last December, the Government backed off a decision to impose taxes on a number of basic consumer items after widespread public outcry. |
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