Luncheon says further tax reduction not out of the question
Head of the Presidential Secretariat, Dr. Roger Luncheon, has said that government may have to reduce the excise tax on gasoline all the way to zero if the price of fuel continues to climb and if the minibus operators continue pressing the travelling public for new fares. He spoke after the hosting of his post-Cabinet press briefing at the Office of the President on Thursday.
Dr. Luncheon, also Cabinet Secretary, said that in as much as the government may try to coerce the minibuses operators by suggesting to them that fare increases may be met with increased police scrutiny, there is no way for government to “force” the buses to comply.
He explained that this is because bus fares are not subject to any regulatory framework in the way that utilities such as light, water and telephone services are regulated by the Public Utilities Commission.
The government recently sought to reduce the excise tax on diesel fuel from 20 percent to 15 percent and a further reduction on gasoline excise tax from 30 percent to 20 percent, all aimed at cushioning the impact on domestic consumers of the upward price movement observed on the world market.
After a meeting with members of three minibus associations on March 22, Minister of Tourism, Industry and Commerce Manniram Prashad exhorted commuters not to pay the higher fares that some operators have been demanding, and which the General Minibus Association, the Guyana Public Transport Association or the Route 32 Minibus Association have not agreed to.
But this newspaper has reported that members of the United Minibus Association have insisted on a fare increase. The minister said this union is not recognised by the ministry and as such, has no authority to raise fares.
Some operators have gone as far as to post the new fare structure in their buses and insist that commuters, including children, pay new fares.
While some passengers pay the increased fare, some others vehemently resist this and ensure they have exact fares. This newspaper observed that one traveller on a Kitty/Campbellville route bus would have none of it when a conducted handed her $20 after she gave him $100. She loudly protested and physically restrained the conductor as the driver attempted to drive away. She ended up dealing the conductor a flurry of slaps to whatever part of his body she could access until he handed her the extra $20.