The Government of Anguilla, in its quest for raising additional revenue to meet public expenditure, is using its wits to meet its various budgetary demands and commitments.
The Government’s latest effort, in that direction, is a substantial increase of the fixed annual licence fee for the two bulk petroleum companies – Delta Petroleum and Sol Limited – operating at Corito, on the south coast of Anguilla.
The fee, approved in the Anguilla House of Assembly on Tuesday, January 26, has been increased from EC$100,000 to a whopping EC$750,000 for the supply companies to deal in and sell petroleum from their bulk storages. The only relief, if any, is the removal of the reference to the variable portion with a gross revenue charge of 0.85% of the previous years which was not reflected in the 2021 Medium Term Economic Fiscal Plan.
One of the negative matters regarding the increased tax is that, if not properly supervised, it could be passed on to the members of the public in several ways. These include the cost of electricity, telephone services, grocery shopping and other means of livelihood and related services.
In a statement leading up to the amending and passage of the Petroleum (Amendment) Act 2021, Premier and Minister of Finance, Dr. Ellis Webster ,told the Speaker of the House of Assembly:
“We brought this bill to consultation with the people last Tuesday. We have had meetings with the two companies which understand our plight — and once the bill is passed in the House of Assembly and accented to, we will continue those conversations. We want to make sure that they understand that they have an obligation, just like we do, to the people of Anguilla — and also understand that these are tough times. These are the times that try men’s and women’s souls.”
The legislation was first crafted some five years ago under the former Anguilla United Front Government in consultation with the UK Government which was then encouraging Anguilla to raise additional revenue. The provisions of the bill were however not brought into operation.
The financially-strapped Anguilla Progressive Movement Government, seeing this as a means of obtaining additional revenue, has now used its wits to amend the legislation by significantly increasing the licence fee and bringing it into force.
Leader of the Opposition, Mrs. Cora Richardson-Hodge, and her colleagues, did not support the Petroleum (Amendment) Act. She argued: “Madam Speaker, it is important, at this point in time, that unless there is a measure to require that the bulk suppliers retain that cost [EC$750,000] , and not pass it on to the ultimate consumer, the Government should not move forward with the implementation of this fee, unless it is able to resolve that situation.”
She added: “I will go further and say that it cannot be simply by word of mouth. It has to be something reflected, if not in writing, by legislative amendment of some sort because times change; memories fade; governments change; and so we do not want to be in a position where that 750,000 dollars – an increase of 650,000 dollars — is passed on to the people of Anguilla.”
Other speakers were, from the Government side: Parliamentary Secretary, Mrs. Quincia Gumbs-Marie, who blamed the former Government for the legislation and not implementing it; Minister of Economic Development, Mr. Kyle Hodge, who said that price control measures could be enacted to prevent the Petroleum tax from being passed on to consumers; Minister of Infrastructure, Mr. Haydn Hughes; Minister of Social Development, Ms. Dee-Ann Kentish-Rogers; Minister of Home Affairs, Mr. Kenneth Hodge; and Ministerial Assistant, Mr. Merrick Richardson.
In addition to the Leader of the Opposition, Mrs. Richardson-Hodge, the other speakers were Mr. Jose Vanterpool and Mr. Cardigan Connor.
The amendment to the Petroleum Act will take immediate effect once it is accented to by the Governor.
