In Jamaica, an Energetic Tax Debate

Above: from left, Dr Peter Phillips and Minister Audley Shaw

By the Caribbean Journal staff

Jamaica’s cabinet decision to re-introduce a Special Consumption Tax on energy drinks in the country has led to a political row.

The tax had reportedly been withdrawn by Minister of Finance Audley Shaw in the spring. Its re-introduction was announced by Information Minister Daryl Vaz this week, however.

Just how energy drinks are defined will be part of a description provided by the country’s Ministry of Health, Vaz said. The tax has not been introduced without controversy.

“The way the tax has been imposed highlights a continuing pattern of mismanagement of the taxation process and the financial affairs of the country,” Opposition Spokesman on Finance Dr Peter Phillips said in a statement. “Now we have a new tax and the public has only received a comment from the Minister of Information to indicate that the taxes are now to be imposed.”

The initial tax was announced last December by Finance Minister Audley Shaw, the government said, and was aimed at compensating for what the government perceived as a revenue shortfall resulting from a rollback of the country’s tax on hard liquor.

The definition will make reference to drinks including herbs, amino acids and caffeine, and the amendment to the tax allows the Health Ministry to expand the list of taxed products where necessary.

Phillips said the tax as part of what he described as a “cavalier approach to taxation” on the part of the government.