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The region’s president said a “benign regional tax on fuel is needed in the interests of the municipalities of Guadeloupe and excludes any coordination with Martinique”.
“In response to criticism of the level of regional fuel taxes, regional president Victorin Lurel wishes to reiterate the merits of the option retained by the community and the consequences of applying other models.
The regional administrator reminded those who make hasty and unfounded comparisons with Martinique’s tax revenues that the sister island benefits more from the establishment of the refinery and SARA headquarters on its territory: direct jobs and indirect economic activity generated, the impact caused by tax resources is greater than that of Guadeloupe.
Victorin Lurel believes that the voluntary choice of the Guadeloupe region to lower tax levels than France (the second best overseas) is fair and reasonable because it preserves the financial resources of the municipalities and departments, which receive 49% of the products of the special tax on fuel (27% for departments and 22% for municipalities), but is not excessive for consumers.
Adopting the same regional taxation on petroleum products as in Martinique would result in all local authorities (not only the region) losing about €17 million in revenue per year, including sea dues and TSC, just for diesel.
According to our estimates, such a unification, advocated by some, would have the following consequences: a reduction in revenues of at least 9 million euros per year for the municipalities, 5.6 million euros for the region and 2 million euros for the sector, with the risk of increased tax pressure to compensate for these revenue losses.
Victorin Lurel also recalled that the regional tax on fuel takes into account the additional costs related to transport, as well as the double island and its restrictions on the southern islands; this forces the region to mobilize freight assistance financed in this way.
The regional authorities also support the affected sectors through tax rebates, especially to farmers, fishermen, artisans, taxi drivers and large discounts, the construction sector and transporters of goods and materials, with a reimbursement of 8 cents per liter. The maximum consumption is 13,000 liters (between 200 and 300 operators benefit from this aid).
The President of the region concluded by making it clear that, regarding dockage fees, the gap with Martinique in diesel cannot be understood without comparing the application of the Regional Council of the Sister Islands for the most basic necessities, where the rates are much higher than those applied in Guadeloupe”.
End of press release.
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