Fuel tax increases for gasoline and diesel from seven to 14 cents per gallon will go into effect Monday, according to the V.I. Internal Revenue Bureau.
“The fuel tax will be collected at the time of importation into the territory. On St. Thomas, importers must pay the 14 cents tax at the Excise office in the Nisky Shopping Center before clearing the shipment," said IRB Director Claudette Watson-Anderson in a statement. On St. Croix, importers must pay the 14 cents tax at Gallows Bay and the airport.
“Importers are reminded that there is no cash collection at the ports of entry on both islands,” Watson-Anderson said. “Credit cards and checks are accepted for payment of the fuel tax.”
The change in the tax came about from recent legislation sponsored by Sen. Carlton "Ital" Dowe and six other senators to raise the fuel tax from seven cents to 14 cents, while eliminating the current 6 percent excise tax on imported gasoline and diesel. The 6 percent tax has not been collected because gasoline and diesel were being produced within the territory at Hovensa refinery, which has ceased refining but still supplies gasoline imported through its facilities.
If the tax remained on the books, when the territory starts importing gasoline in quantity, gas prices would increase some 21 cents more per gallon. The new legislation allows some increase, but prevents it from rising the full amount.
The new fuel tax revenues are to be allocated to purchase new, more efficient power generating units in both districts and help the Water and Power Authority secure bond financing, all of which should lower fuel consumption, and hence lower customer’s bills, currently among the highest in the nation.
Importers will be required to confirm the gallons of gasoline or diesel being imported in order to calculate the tax due each and every time there is a shipment to be released. A new tax form has been implemented to assist with this process.
In addition, the monthly fuel tax return has been revised to allow for the upfront payments of this tax to be treated as a credit towards each month’s tax liability. Fuel tax returns are due 30 days following the close of each month.
Revised forms are available at the excise tax locations and also on the bureau’s website at www.viirb.com.
More money leaving your pocket and going straight into the government’s coffers. More money for Senators to steal. More money for surly government workers to sit around at their do-nothing work welfare jobs and not help you when you come into their offices. More money for people to live in housing communities on your dime, so they can sell drugs and rob your home when you’re at work.
Hooray US Virgin Islands! If you think this is going to get you new WAPA generators, or close the $0.49 per kwh gap between the power bills in the states and your power bill, then you haven’t been paying attention.
You want new generators? How about your convince your government to pay their $120m outstanding WAPA bill. That would buy a lot of fuel and equipment. The reason your WAPA bill is astronomical every month isn’t because of the cost of fuel, it’s because they government doesn’t pay their bills.
Our Senators are determined to get every penny they can from the tax-paying public in order to fund their retirement in lavish style, somewhere down island.
The missing $6.9 Million Dollars should help as well as all the other kick-backs.
Meanwhile, we continue to struggle to pay our bills and live with the consequences of bad legislation without so much as a whimper. Why is that?