Opposition Senator, Dr. Andre Haughton says the government would lose out on $26 b annually, if it is to reduce General Consumption Tax (GCT) by 2 %.

Opposition Leader Dr. Peter Phillips, has been lobbying the government to cut the tax as a reprieve for consumers.

However, Industry and Commerce Minister Audley Shaw and government senator Charles Sinclair have both expressed support for the measure, which would see GCT being reduced from 16.5 %, to 14.5 %.

Speaking in the senate today, Dr. Haughton noted that the reduction would put a major dent in the revenue collected by the government.

The senator said the government has to think carefully about what its objectives are.

He questioned whether the move would be beneficial to citizens.