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PNQ / ESSENCE: Rs 1 billion for VAT and the RDA

27 Mars 2013 - Le Mauricien

PNQ / ESSENCE: Rs 1 billion for VAT and the RDA

For his first performance as leader of the opposition in the Chamber at the edge of the Private Notice Question (PNQ), Alan Ganoo preferred cross swords with the Minister of Trade and Industry Cader Sayed -Hossen, about the recent increase in prices of petroleum products.

The tone of the exchanges between the main protagonists had slippages this introduction, the Speaker Razack Peeroo ensuring grain against any slip of the tongue may give rise to tensions.

Based on data provided by the Ministry of Commerce, in response to the PNQ, the new leader of the opposition, who had to resign to take the seat left vacant by the disease history of MMM leader Paul Bérenger currently treatment in France for an early cancer in the amygdala, demanded an overhaul of the pricing formula for petroleum products in the current force would qu'écorcher consumers. The parliamentary government, including Cader Sayed-Hossen, did not fail to remind Alan Ganoo that the paternity of the formula returns the MSM, "his new friends in the opposition of the time they were part of the government." Others did not fail to mention the name of the former Minister of Commerce for this purpose Showkutally Soodhun. But soon, the Speaker intervened to get back on track additional exchanges.

Alan Ganoo denounced the fact that with the current price structure, the Value Added Tax (VAT) and contributions to the Road Development Authority pending the introduction of tolls represent a sum of Rs 1.7 billion drawn of the consumer's pocket each year in this period of economic hardship for households.

On the other hand, early in the session, the Speaker noted the "gentleman's decision" Cader Sayed Hossen, in a dispute with the former opposition leader Paul Berenger. He had been accused of making use of an unparliamentary word to the Minister in respect of trade on December 18, PNQ. The minister called for arbitration of the Presidency in this matter. But in light of recent developments, Cader Sayed Hossen, had approached the president of the National Assembly to abandon the proceedings.

Before handing over to Alan Ganoo, Razack Peeroo focused on the virtues of e-Parliament announcing that the tablet promised parliamentarians in the budget will be distributed in two weeks and that parliamentarians will be involved initiation sessions for this purpose.

>Ganoo: Trade Minister can he obtain from the State Trading Corporation (STC) information about the reasons for the recent increase in prices of petroleum products, the amount paid in terms of excise duty, the Tax on Value added tax (VAT) of the contribution on behalf of the Road Development Authority, subsidies on the price of retail gas appliances, rice and flour in 2011, 2012 and planned for 2013, indicating whether the government intends to review the pricing structure to reduce oil prices, the amount paid by the STC Betamax to date indicating the formula for the cost of freight, profits from the sale of the STC and Jet Fuel bunkering in 2011, 2012 and forecasts for 2013 and accumulated losses on Hedging, including interest payments and insurance coverage?

>Sayed-Hossen: Do I noted at the outset that the last increase in oil prices occurred almost two years after the last. It is a fact that in January 2011, the APM formula was replaced by another mechanism with the major objectives or mitigate, if not eliminate, the major fluctuations in prices on the world market for consumers, and remove the shock price changes each month end as such has been the case so far. I must say that these goals have been achieved because the prices of petroleum products, from gasoline and oil, remained unchanged from 30 March 2011 to 1 March 2013 during this period even if the reference price on the world market, Platts had increased by 40% respectively with a ton of gasoline from USD 729 to USD 1021 and oil of USD 88 per barrel to USD 126.

In this perspective, the Price Stabilization Account was no longer able to sustain these pressures increase on the world market with prices up to USD 1075.45 per tonne respectively and USD 131.24 per barrel of oil. Given these trends, the price at the pump would have had to spend Rs 49.30 per liter for gasoline at Rs 53.70, up 8.92%, and Rs 41.20 to Rs 45.10, or 9.74% for oil.

In order to mitigate this increase, the government took the decision not to enforce claims under the Hedging or Rs 1.25 for petrol and Re 1 for the oil to reach the current price of Rs 52.25 and Rs 43.95.

At the end of last year, the deficit of Price Stabilization Account was Rs 212.2 million, of which Rs 111.3 million for gasoline, it rose to Rs 317 million, of which Rs 156 million for gasoline at the end of February.

Regarding levies under the Excise Duty, the amount is Rs 2.55 billion for the two products in 2011, Rs 2.6 billion in 2012 and estimates of Rs 2.7 billion this year . Table for VAT is as follows: Rs 952 million for petrol, Rs 1.2 billion for fuel in 2011, Rs 999 million for petrol and Rs 1.24 billion for fuel in 2012 and forecasts Rs 1.1 billion for petrol and Rs 1.4 billion for oil this year.

Contributions to the MID Fund are as follows: Rs 124 million in 2011, Rs 125 million in 2012 and estimates of Rs 131 million this year. The GDR has punctures following the oil price is Rs 739 million in 2011, Rs 756 million in 2012 and Rs 778 million in 2013.

Subsidies on the price of retail gas appliances, rice and flour are: Rs 613 million in 2011, Rs 634 million in 2012 and Rs 653 million in 2013. With revenues on sales of petroleum products to aircraft and for the purposes of bunkering, these subsidies are Rs 1.7 billion in 2011, Rs 1.6 billion in 2012 and Rs 1.7 billion this year.

As for freight, STC pays $ 17.6 million to Betamax. Take the example of the oil cargo landed at Port Louis on January 12, the amount of freight was Rs 54,558,805, or 78 cents per liter. The cumulative amount of freight paid to Betamax is Rs 2.5 billion since August 2010.

The profits made by the STC on the sale of petroleum products to airlines and bunkering are: Rs 329 million in 2011, Rs 501 million in 2012 and Rs 553 million in 2013.

The issue has already been addressed Hedging and fro in the National Assembly. Losses on Hedging amounted to Rs 4.7 billion and Rs 257 million in interest.

>Ganoo: Based on official figures, the Minister conceded that the price per ton of gasoline was 1 073.45 million at the end of February this year against 960 in March 2011, an increase of 12%, the same percentage increase for oil? Is it okay?

>Sayed-Hossen: I am concerned by the fluctuations in the world market. Consider the evolution of prices on the world market in March this year, March 1: The price was 1013 dollars and yesterday it was 1005 dollars while the highest price of the period was recorded March 18, or 1023 dollars per ton. For oil, was 123.9 dollars per barrel on March 1st to hit 118.14 dollars yesterday, the highest price of $ 124 on March 6. If the PPC was to meet yesterday to fix the price ...

>Ganoo: I am sorry to intervene. My question was simple, compared to the world market price. (The leader of the opposition repeats the numbers listed above.)

>Sayed-Hossen: I get the point of the leader of the opposition. It could be misleading. These details ignoring the fact that changes have been made. If the PPC was to meet yesterday to fix prices, we would have had a decrease of 1.05% in the price of gasoline and 1.02% for oil. These increases are insignificant given the margins imposed by the regulations to change the oil prices at the pump. I agree ...

>Ganoo: Now that the Minister shares my point of view, he is aware that the price increase on the world market was 7% for gas and 0.8% for oil. (Leader of the Opposition is interrupted by cheers from the ranks of the opposition.) Therefore with the reference price, the STC is Fleecing the population. Again, the increase from 2011 to 2013 was only 7% for gas and 0.8% for oil.

>Sayed-Hossen: The leader of the opposition Does not Seem to understand ...

>Opposition benches: To tou sel konpran…

>Sayed-Hossen: It's too easy to take the course of 2011 and compare. Meanwhile, there have been fluctuations. Otherwise how to explain the deterioration of Price Stabilization Account is an account, not a fund from December 2012 to February last ...

>Ganoo: With reference prices, STC skinned consumers, who should benefit from economies of Rs 170 million and Rs 590 million respectively ...

Sayed-Hossen: There are procedures to follow to fix prices of petroleum products by the PPC. There is no manipulation. Figures are available to the PPC by STC. These figures are not cooked ...

>Ganoo: The Minister does concede that the current formula is unfair, or take the price of the six previous months and six successive price fixing? This methodology is unfair ...

>Government benches: Showkat sa…

>Ganoo: We are the only country in the world to rely on the future and to use this methodology ...

>Government benches: Own goal ...

>Sayed-Hossen: This formula was developed by your new friends in the opposition when they were in government.

The Speaker acts promptly to interrupt the Minister.

>Bhagwan: Bizin fer Tengur vinn get twa dan biro.

>Sayen-Hossen: He passes me every day. I am not going to comment annum opinion.

>Ganoo: With the increase in oil prices, may confirm the additional amount of VAT from the Ministry of Finance?

>Sayed-Hossen: A simple calculation gives us Rs 351 million.

>Ganoo: In a context marked by economic depression, would it not be better to save consumers the puncture of Rs 351 million under VAT without forgetting the contributions to the Road Development Authority, more than Rs 1 billion ?

>Sayed-Hossen: The irony is that this reflection comes from a party that had increased the VAT of 50% ...

>Ganoo: There is one other item, transaction costs of Oil majors or the oil barons in Mauritius. They benefited from revision margins of 18% and 24%, respectively, over Rs 115 million, while service station owners got nothing?

>Sayed-Hossen: Petroleum products do not flow automatically from the oil tanks of vehicles. There are investments as well as incurring costs. The Leader of the Opposition talks about oil barons, earlier I tell him who received gift of Rs 8 billion ...

This remark raises a real buzz in the chamber with Cader Sayed Hossen, continuing his explanation to support that from 2008 to 2013 the oil companies had obtained no revision margins. He added that with the decision to revise the margins, the STC will not have to incur Rs 700 million investment in storage facilities additional 15 000 tonnes in the first place.

>Ganoo: The Minister seems so sympathetic to the oil companies. But he knows that the company Vivo announced profits of Rs 324 million then it would have been more appropriate to reduce the burden of the population in the economy?

>Sayed-Hossen: They should know better ... It's too easy for the opposition to criticize profits. Says she face the profits of Rs 3 billion of commercial banks?

For the last part of the trade, Rajesh Bhagwan calls on the Minister protests Suttyhudeo Tengur due to higher oil prices. "They are representatives of consumers, they must protest in the opposite case they lose their jobs. It is the same for the opposition, "added the Minister.

The leader of the MSM speak on a survey announced since 2009 by Prime Minister Navin Ramgoolam on the responsibilities of the Hedging Saga and the need to make public the contract between the STC and Betamax. The Minister has taken a note of the Prime Minister that the contract is "Commercially sensitive".

Previously, the leader of the opposition denounced the generous terms granted to the cargo, namely the guarantee of payment of $ 17.6 million and the daily payment of Rs 1.5 million. "This is scandalous. It is three times the rate "should he run while the minister stood comparison with previous freight tanker.


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