One year of light bills savings: VAT reduction stays for 8 months more Loop Barbados

The content originally appeared on: News Americas Now

Black Immigrant Daily News

The content originally appeared on: Barbados News

Value-Added Tax (VAT) will continue to be charged at 7.5 percent till September 2023 instead of ending last month as first planned.

This makes it a full year of savings for customers of the Barbados Light & Power Company (BLPC).

The news came in the Lower House this week and in addition to Bajans breathing a sigh of relief, BLPC too welcomes the news from the Government of Barbados of the continuation of the VAT reduction for its customers.

In a release, BLPC Manager Customer Care Rodney Dottin is quoted as saying:

“In August 2022, the Government of Barbados introduced a VAT reduction on electricity bills to help customers manage energy costs at a time when high global oil prices were having a significant impact on monthly bills.

“Since that time, VAT has been charged at 7.5 per cent instead of 17.5 per cent on the first 250 kWh for residential bills, representing a monthly savings of about $14, based on February’s FCA, for customers using a minimum of 250 kWh. The reduction was to come to an end on January 31, 2023, but, with Government’s announcement, VAT relief will continue until September 30, 2023.”

BLPC said that bills issued to customers in the month of February through September will continue to reflect the reduced VAT on the first 250 kWh of energy.

Fuel price steadily declining

Barbadians are also benefiting from the lowering price of oil globally.

In terms of fuel costs to customers, which have varied significantly over the past year, BLPC is pleased to see world oil prices – and the resulting Fuel Clause Adjustment – continue to decline from a high of almost 50 cents per kilowatt hour in mid-2022 to about 32.5 cents in January 2023 and remain stable February.

BLPC additionally reminded residential customers that in addition to the 10 per cent reduction in VAT, they can also capitalise on the 10 per cent discount available to them through early bill payments to save 20 per cent overall on their bills for another eight months with this news.