Reduction in GCT on Electricity Now in Effect

The Government’s promised reduction of General Consumption Tax (GCT) on electricity is now in effect.

Effective May 1, a reduced GCT rate of seven per cent was applied to the energy charges of both post-paid and prepaid residential customers of the Jamaica Public Service (JPS).

The new rate replaces the 15 per cent GCT that was previously applied to usage over 150 kilowatt hours (kWh).

Minister of Education, Skills, Youth and Information, Senator Dr. the Hon. Dana Morris Dixon, who addressed Wednesday’s (May 7) post-Cabinet press briefing at Jamaica House, said customers should expect to see a difference in their next billing cycle.

“The new seven per cent GCT rate applies to residential customers’ energy usage as at May 1, 2025. Prepaid customers will also see a new tax line on their receipt or vouchers when they top up, starting May 1,” she said.

Dr. Morris Dixon added that post-paid residential customers who use 250 kilowatt hours or less per month will receive a three per cent government tax subsidy and a seven per cent government tax rebate.

These benefits, she said, will be applied automatically to customers who qualify and will appear as a separate line item on their JPS bill.

“This was a commitment that was made. It was not just words. It is real and I know that a lot of Jamaicans are going to benefit from this. Again, we are a Government that cares,” the Minister said.