ROSEAU, Dominica – July 30, 2007 – The government of Dominica has slashed in half excise taxes on fuel for electricity and it is expected that the cost of power should fall by about six per cent.
Prime Minister Roosevelt Skerrit said that DOMLEC, the power company, agreed to also reduce cost from their side through the introduction methods to increase efficiency and reduce wastage.
The 50 per cent reduction in excise tax plus the 2 cents (Eastern Caribbean currency) per KWH reduction offered by DOMLEC will result in total savings of 10.12 cents per KWH inclusive of value added taxes (VAT).
Skerrit said if government were to remove all excise tax, it would lose EC$9 million in revenue and reduce the retail price by 12 per cent.
He cautioned that rising oil price could wipe out gains.
Dominica’s economy grew by 3.5 per cent in 2005 and 4.0 per cent in 2006, following a decade of poor performance. The country nearly had a financial crisis in 2003 and 2004. Growth in 2006 was attributed to gains in tourism, construction, offshore and other services, and some sub-sectors of the banana industry.