Prime Minister Andrew Holness says his administration will reduce the General Consumption Tax (GCT) from 15 percent to 7 percent.

Holness made the announcement while speaking at the Jamaica Labour Party’s 81st Annual Conference on Sunday, November 24.

“We are going to transform the fiscal structure of the electricity market in Jamaica to ensure that it aligns with incentives to reduce the cost of onbording and increase options for the consumer. After the next budget, which is in March, coming up, the government will reduce GCT on electricity from 15 per cent, which it is now to 7 per cent,” Holness said.

Additionally, Holness noted that the non-tax threshold will be removed and replaced with an incentive-compatible rebate of GCT for persons who use 200 mW or less per month.

“This will allow the rollout of prepaid electricity purchases, which were implemented many years ago but have remained only a pilot. You know how many people want to get on the prepaid system, but because it is only a pilot, you can get it in some places, and sometimes it is not offered. Now the Jamaica Public Service will be required to roll out prepaid meters nationally, particularly in vulnerable communities. With the simplified electricity arrangements the JPS will also be required to introduce time-of-day pricing of electricity. This means customers can benefit from better rates by arranging how they consume electricity in off-peak hours,” he said, noting that Jamaicans can now economise how they use electricity.

The Prime Minister also noted that the government will scale up its onboarding project for customers in vulnerable communities. This will provide households with electrical outlets, lights, switches and certification.

He said this will assist these communities in becoming legal JPS customers while addressing the issue of energy poverty.