Ottley: PM has to act, not distract on fuel cost/tax issue, GEBE relief

GREAT BAY--Member of Parliament Omar E.C. Ottley has responded to Prime Minister Luc Mercelina’s recent comments on fuel taxation, stating that the Prime Minister’s remarks confirm, rather than refute, the issue of double taxation.

MP Ottley said, “The Prime Minister’s own words prove my point – by admitting that the fuel is taxed once at wholesale and again at the pump. He is confirming what every driver in St. Maarten already knows: the government is double-dipping on fuel.”

In his recent comments, Prime Minister Mercelina stated that there is no double taxation on fuel used by N.V. GEBE for energy generation. However, MP Ottley clarified that his concern was not about GEBE but about fuel sold to and through gas stations.

“The Prime Minister in his release admitted, ‘Fuel sold to gas stations is taxed at the point of sale and again at the consumer level,’” Ottley stated. “Whether government lawyers prefer to label these as ‘separate taxable events’ does not change the fact that ordinary citizens are paying Turnover Tax (TOT) twice before the fuel even powers their vehicles or homes.”

MP Ottley added that referencing GEBE’s exemption does not address the main concern. “My statements were never about GEBE. They were about SOL and other suppliers, who pass TOT to government when selling fuel to gas stations, only for the government to apply TOT again when consumers fill their tanks.”

He said this duplication increases fuel prices. “Families are struggling, small businesses are cutting back, and workers are watching more of their pay checks disappear at the pump. Meanwhile, government revenue increases from this structure.”

MP Ottley also questioned the lack of progress on the promised GEBE relief. “Instead of explaining why households are still waiting for the relief the government promised by July 2025, the Prime Minister is hiding behind wordplay. People do not care about ‘taxable events.’ They care that their energy bills and fuel costs keep climbing while the government does nothing to ease the strain.”

He called for a full review of the fuel taxation system. “If the government genuinely believes there is no double taxation, then it should have an independent audit of the entire fuel supply chain – from importer to gas station to consumer. If it proves what every driver on this island already knows, then government must immediately correct this and provide retroactive relief.”

“The people of St. Maarten deserve more than political distractions and legal gymnastics. They deserve leaders who will confront the truth and deliver the relief you promised,” MP Ottley concluded.

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