Electricity tax cut ‘a big help’ but ‘small businesses like mine are struggling too’

This replaces the previous 15% GCT that was charged on energy consumption exceeding 150 kilowatt hours (kWh) per month.

Under the revised system, all residential customers, regardless of their consumption levels, will now benefit from the lower rate. This measure is expected to ease the financial burden on households struggling with high electricity bills.

Prepaid customers began seeing the new GCT rate reflected on their receipts and vouchers from May 1, while post-paid customers will notice the changes on their JPS bills starting in June.

In addition to the reduction in GCT, the government has introduced a special tax subsidy and rebate aimed at supporting low energy users. Post-paid residential customers who consume 250 kWh or less per month will automatically receive three percent government tax subsidy, and a seven percent government tax rebate.

These two benefits, which will appear as separate line items on electricity bills, represent a combined 10% financial relief for qualifying customers. This move is particularly significant for households with minimal energy usage, such as retirees, single-person homes, and small families, many of whom fall within the 250 kWh threshold.

One of these residents is Clover Williams, a single mother of two living in Portmore, St. Catherine who welcomed the change. “Every dollar counts. I don’t run the fan all day or have fancy appliances. I’ve had months where I had to choose between paying the light bill and buying groceries. This tax cut might seem small to some, but for people like me, it’s a big help,” expressed Williams. 

However, not everyone is convinced the change goes far enough. Toni Sinclair, a small business owner in May Pen Clarendon, voiced concern that commercial customers are left out. “Why are we still paying 15 percent? Small businesses like mine are struggling too. I was hoping for at least a slight reduction across the board,” he argued.

While the relief measures focus primarily on residential customers, the Government has made no adjustments to the GCT rate for commercial electricity users. The 15% tax remains in place for both prepaid and post-paid business accounts, leaving some in the private sector calling for broader consideration.

The Jamaica Public Service Company has advised that customers review their bills carefully over the coming months to monitor the applied tax rates and ensure they are receiving the appropriate benefits.