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Jul 19, 2006

G.S.T. on electricity bills looks suspicious

Story PictureConsumers already forced to cope with certain unscrupulous merchants using the implementation of G.S.T. to price gouge, now face another G.S.T. scam–this time on their electricity bills. As announced long ago, beginning July first the ten percent tax has been placed on all light bills above one hundred and fifty dollars per month. That was no surprise … but the shock came today as the latest bills were issued. As the sample bill on the screen shows, the period for the service was June third to July fourth. Thus only four days worth of electricity was consumed after the G.S.T. became effective. While common sense would dictate that only those four days usage would be subject to G.S.T., the bill clearly shows that the tax has been charged on the entire thirty-one days: a total of fifteen dollars and eighteen cents. The more sensible pro rated amount, using the fraction of four divided by thirty-one, yields a charge of only one dollar and ninety-six cents. That’s a big difference … and while you might say that thirteen dollars and twenty-two cents paid one time is no big deal; think about the situation of a large hotel, whose monthly light bill runs as high as seventy-five thousand dollars … and hotels cannot claim back their G.S.T. payments.

We checked this afternoon with B.E.L. and they said they were just following the law, which says that invoices dated after July first must charge G.S.T. on the full amount of the invoice. In any case, B.E.L. is not the culprit because it does not keep the money it collects from G.S.T.; it passes it on to the government. From morning we tried to contact the head of the G.S.T. unit, Beverly Castillo, but were told she was in a meeting. This afternoon she sent us a message that she was seeking some information from B.E.L. and would get back to us. We’re still waiting for the call. At this time we can only advise affected consumers to hold off on their payments until someone in authority can explain what’s going on.


Viewers please note: This Internet newscast is a verbatim transcript of our evening television newscast. Where speakers use Kriol, we attempt to faithfully reproduce the quotes using a standard spelling system.

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