Bauxite levy not abandoned - Shaw

Finance Minister Audley Shaw says the Government of Jamaica has not abandoned the bauxite levy. He made the statement at Tuesday's meeting of the Standing Finance Committee in Parliament.
  
The levy has been put on hold and the government will instead engage in a profit share regime with mining companies. This, according to Mr. Shaw, will help to rebuild the bauxite sector.

"In the case of Jisco (Jiuquan Iron & Steel Company Limited), it's five years and in the case of Rusal, it is less than that. But there is not a straight line thing in it because in the respect of Ewarton for instance, you have a lot of aged equipment there that needs capital improvement, and of course, in the case of Alpart, you recognise the significant sums of money that have to be expended there. So we think that the period of relief on the levy is justifiable in order to get it going and to get it up and running as a permanent fixture in rebuilding the sector," he argued.   
 
Opposition concerned

Meanwhile, the Parliamentary Opposition said it is deeply concerned that the government is not charging a tax on companies which mine bauxite in Jamaica.
  
Phillip Paulwell, Opposition Spokesman on Mining, has called for the government to re-think the policy.

"It is the only real source of revenue that we're getting from an industry that depletes our resources. It is the only benefit that the country will receive in terms of direct taxation," he said, adding that the opposition believes "the timing is bad because the industry is on the upsurge - that is with lower oil prices (and) with the price of alumina moving upwards."

Instead, he suggested it is "time to try and reap some of the losses that we have experienced over the last 10 years."    

Mr. Paulwell insisted the profit share agreement will not work because it is difficult for governments to monitor and ensure companies make a profit from which to collect any significant revenue.
                                                     
"That's the reason why we believe the levy is the surest way of enabling revenues. It is a most efficient taxation providing GCT. Going to a profit sharing regime is not going to enable you to receive any revenue," he reiterated.