We also had to ask the Prime Minister about the government's tax take on every gallon of fuel that consumers must pay.
Our newsroom has been provided with a snapshot of the price breakdown of 2 different time periods to compare pump prices. In these documents, viewers will be able to see that on December 13, 2013, the pump price per gallon of diesel was 10 dollars and 72 cents. On March 2, 2022, the pump price of diesel was 12 dollars and 56 cents.
But, if you compare the landed cost of diesel from both time periods, the official figures say that in December 2013, it was at 6 dollars and 72 cents per gallon, which was more than the landed cost on March 5, 2022, at 6 dollars and 47 cents per gallon.
At that time, the government's tax take was only 2 dollars and 61 cents per gallon. But, 3 weeks ago, the government's tax take was 4 dollars and 53 cents, which is exactly 1 dollar and 92 cents more in taxes which you are paying as part of the total pump price.
We asked PM about that, and here's how that conversation went:
Daniel Ortiz
"The suggestion is that your ministry is allowing this increased taxation because your tax take is 1 dollar and 92 cents higher than in 2013 when the landed cost was similar."
Hon. John Briceno - Prime Minister
"Well, you see, you take selective statistics because if you were to look at the numbers, the taxes increased going to 2016, 2017, and 2018. So, you're using selective statistics; if you want to be fair, you need to say from where we inherited the tax. The tax as a percentage, since we have taken it, has gone down as a percentage-."
Daniel Ortiz
"As a percentage of what exactly?"
Hon. John Briceno - Prime Minister
"As a percentage of what it costs. I don't have it in front of me, but I can - I'm sure you have it already. If we were to take 1 dollar off the tax, that's 45 million dollars. The 10% that we're returning to the public officers, you are looking at probably 50 or 60 million dollars. So, you are looking - of you add both of them at the same time - a hole of 120 million dollars. So, how are we going to pay for it?"
Daniel Ortiz
"Is this pointing out a glaring issue, which is that governments have focused too much on fuel tax take and not spread that burden on other goods and services?"
Hon. John Briceno - Prime Minister
"You're making the very point that I said earlier. We need to grow the economy. The economy is so small, and fuel, because it comes in on a ship, it's easy to be able to collect, but when you have so many different importers, different - you know the challenges. We don't have to go down that way. What we need to do is to grow the economy, to be able to spread that cost, and that is what we want to do. We've been tightening up at the Customs Department. The Customs Department right now is collecting more than, as much as they were collecting in 2019. So, it is easy to go at fuel, yes, it is. But then, what is it that we're going to do? How is it that we're going to pay for the teachers, the BDF, the security, the pro-poor policies that we're putting in place, the housing? There are so many things that we have to do, and as it is right now, we have to try as best as possible to go into areas where we can best afford to collect."
