House Approves Order for Five-Year Extension on Bauxite Industry Fuel Concession

The House of Representatives, on Tuesday (June 27), approved the Bauxite and Alumina Encouragement (Relevant Concession Period) Order, 2023.

The Order will facilitate further extension of the duty concession on fuel for the bauxite sector, for the next five years.

The Bauxite and Alumina Industries (Encouragement) Act was previously amended to grant the duty concession for the period July 1, 2018, to June 30, 2023.

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, informed that while the bauxite industry continues to make a tremendous impact on the economy, the sector continues to need the concession in order to remain afloat.

He pointed out that energy is a major component in the pricing of the final product.

“A policy decision was taken to extend the concession for an additional five years. The Act allowed for this concession period to be amended simply by issuing an Order, subject to affirmative resolution after review of the needs of the industry, thus eliminating the need to embark upon elaborate legislative changes, going forward,” Dr. Clarke said.

He noted that it has been determined that the sector continues to require the support provided by the fuel concession, except petrol.

“It has been determined that the sector still requires that support, and withdrawal of the benefit at this time would have grave financial and economic implications for Jamaica, inclusive of potential closures,” Dr. Clarke further pointed out.

He gave the assurance that the relevant engagements are ongoing to encourage the bauxite and alumina sector to reduce their dependence on the type of fuel being utilised, based on the Government’s move to utilise cleaner energy resources in all sectors,

“We hope that, over time, the dependence on fuel oil will be reduced,” Dr. Clarke stated.

The concession on fuel for the bauxite industry was first enacted in 1979 and continuously applied up until now.