House Approves Order for Five-Year Extension on Bauxite Industry Fuel Concession  

• The House of Representatives, on Tuesday (June 27), approved the Bauxite and Alumina Encouragement (Relevant Concession Period) Order, 2023. The Order will facilitate further extension of the duty concession on fuel for the bauxite sector, for the next five years.
• The Bauxite and Alumina Industries (Encouragement) Act was previously amended to grant the duty concession for the period July 1, 2018, to June 30, 2023. Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, informed that while the bauxite industry continues to make a tremendous impact on the economy, the sector continues to rely on the concession to remain afloat. Due to this, a policy decision was taken to extend the concession for an additional five years.
• The Act allowed for this concession period to be amended simply by issuing an Order, subject to affirmative resolution after review of the needs of the industry, thus eliminating the need to embark upon elaborate legislative changes, going forward.  Dr Clarke noted that withdrawal of the benefit would have grave economic implications for Jamaica, inclusive of a potential closure of the industry.
• However, he gave the assurance that the relevant engagements are ongoing to encourage the bauxite and alumina sector to reduce their dependence on the type of fuel being utilized, based on the Government’s move to utilize cleaner energy resources in all sectors.

 (Source: JIS)