The Government has channelled its stronger-than-expected financial position into a customs duty break that is expected to offset an increase in electricity bills set to come into effect “on or after” August 1.

David Burt announced the move on Wednesday after Belco revealed it had negotiated the increase with the Regulatory Authority, citing global inflation and upgrades to infrastructure as the reasons.

The price hike drew swift condemnation from the Government, with the Premier announcing the Customs Tariff Amendment Bill 2024 to be brought to the next sitting of the House of Assembly.

Yesterday, Mr Burt followed through. He told MPs: “This reduction is expected to cost the treasury approximately $10 million.

“This government has positioned itself to take this action due to its strong economic performance and successful execution of our economic development strategy.”

The Bill has been endorsed by Rena Lalgie, the Governor, to take effect from its first reading in the House to “ensure its implementation in time for next month’s billing cycle, to reduce the impact of the recently announced increases in electricity rates”.

The duty on the fuel used to generate electricity will be cut by 60 per cent, from 20 cents a litre to eight cents.

Mr Burt said the legislation was testament to the Government’s commitment to taking action on the people’s behalf, as well as its stewardship of the island’s financial affairs.

The Bill, tabled under the Provisional Collection of Revenue Act, applies to the levies set on Belco’s diesel and fuel oils under the Customs Tariff Act 1970.