Pay your light bills now with the 10% GST added on, and if someone made a mistake, you either will or won't get back the difference later. But if you don't pay you bill when it's due, BEL will cut your light. That's the best advice we can offer tonight as BEL has issued a statement saying that the tax charged on electricity you used before July 1st. is legal.
In a press release today, BEL made it clear that it expected this to be a problem and got clarification in writing from the GST office. That letter said, "GST will be applicable to all invoices issued for electricity, consumption and all other charges...on invoices issued after July first, 2006."
That's what the GST technicians said then, a clear directive to charge the GST for electricity consumed before July first. But despite this explicit instruction, BEL says that last week, the GST office requested that BEL consider giving refunds of tax paid for electricity consumed before July first.
Today, acting director of the Sales Tax office, Cynthia Castillo said her office will have to wait until Wednesday when their legal counsel Gian Ghandi meets with BEL's attorney to settle matters.
But for BEL, it is settled right now. The utility's position is that it would be illegal for them to refund GST and anyone seeking a refund should try and get it from the GST office.
This wrinkle in the law, which permits GST charges for services acquired before July first but invoiced after, will allow government to net a nice little windfall. On electricity alone, BEL - on behalf of government - will collect about $1 million in GST for the June electricity, almost a full one percent of the annual GST collection.
