PUBLIC Works Minister, Robeson Benn yesterday reiterated government’s non-support for any reduction of Guyana’s 15 percent travel tax, as was suggested recently by A Partnership for National Unity’s (APNU) Shadow Minister, Joseph Harmon.
“I am not in favour of, and I will not be recommending the lowering of any

taxes. The taxes, by comparison with other areas in the region, are the lowest,” Benn said, adding, “The money we take in taxes relate ultimately to that going into the big pot called the Consolidated Fund, relates to issues supporting travel in Guyana.”
Benn was speaking at a press conference at his office, Wight’s Lane, Kingston, accompanied by Chief Executive Officer of the Cheddi Jagan International Airport (CJIA), Ramesh Ghir; Benn’s Permanent Secretary, Balraj Balram; Guyana Civil Aviation Authority’s, Zulficar Mohamed; and Chief Roads and Bridges Officer, Ron Rahaman.
With the collapse of EZ Jet and Red Jet, there naturally has been a reduction in the availability of seats coming in and out of the country, Benn explained, and the fact of the matter is that the price of tickets relate principally to the availability of seats.
“Given the nature of the business, since seats are sold in blocks a head, the closer you buy your ticket to the intended date of travel, the higher the prices of ticket given the fact they are sold in blocks.
“The lowering of the tax would only result in an increase in demand for ticket prices and an increase in ticket fares because of the way the tickets are sold in blocks and people will respond to what they perceive to be an overall lowering of prices,” he further explained.
Minister Benn said the removal of taxes would impair issues of facility maintenance and the continuation of the operations of the airport facilities, both at CJIA, and at Ogle.
“I want to repeat that issues relating to the overall reduction in the cost of travel relates specifically to the expansion efforts we are making at the Ogle Airport which we have invested in.”
Though the 2013 national budget was cut, people still desire to have domestic aerodromes maintained and wish to have all facilities maintained. “We have paid the commencement fees for the CJIA expansion for more than US$20M last week. We haven’t gotten over the fact that monies for the expansion project were cut, but Guyana has to make a contribution to this airport in a certain amount. The electricity bill ($15M) for the airport is paid by the government. All of these things come together and have meaning. So it’s not simply cutting out here and not taking account of all that is involved in the matter.”
Furthermore, Benn said the airport expansion is held up and is at risk now because payments were unable to be made to the contractor who has been given the commencement information.
“They are there mobilised and waiting. We are also doing the four-lane expansions. All of these things have to be paid for and monies have to come in to have a total solution to air traffic and transport,” Benn said.
The minister noted that the budget cuts have delayed the taking of certain steps, and have thrown a ‘big spanner’ in the works. Nevertheless, he reported that there is detailed work being done on the expansion project currently. “We are going ahead. We are not stopping. We have to go ahead because we spent US$20M on it already.”