Road Transport Operators have urged the general public to disregard any rumour of transport fares increment. According to the group, there hasn’t been a resolution with government on whether there should be an increment.
This comment follows a meeting between government and stakeholders within the transport sector on Wednesday, May 12, 2021. The meeting was to deliberate on a possible review of transport fares. However, it ended inconclusively.
A joint statement issued by the Ghana Private Road Transport Union (GPRTU) and Ghana Road Transport Coordinating Council (GRTCC) called for calm amongst their members. According to them, there will be further negotiations to reach an agreeable resolution.
“On 12th May 2021, a meeting was held with stakeholders to continue negotiations on public transport fares. The meeting reviewed the cost components including the recent increase in the price of petroleum products, cost of spare parts, inflation, drivers’ salaries and taxes amongst others. The meeting was however inconclusive.”
Meanwhile, commercial drivers in the country have been advocating for increment in transport fares. This follows the introduction of new taxes and upward review of fuel price in the country.
Also, transport operators have been directed to maintain existing transport fares until new charges are approved.In lieu of this, the unions have urged the general public to disregard claims of any increase in transport fares.
“We entreat all transport operators to stay calm, as we negotiate for a fare adjustment within the shortest possible time. We also entreat the general public to disregard any purported increase in fares”.
Bring clarity to Vehicle Income Tax
Additionally, the transport operators asserted that, there is an existing motion to bring clarity on the Income Tax Amendment Act. This, the group explains, has placed the implementation of the Vehicle Income Tax in some ambiguities.
“A motion was tabled to bring clarity to some of the provision in the Income Tax Amendment Act, 2021 (Act 1066). The Act in its current form suspends the payment of Vehicle Income Tax (VIT) for taxis and trotro. However, its application has been shrouded in ambiguities.
“The VIT constitutes part of the cost build-up for the determination of fares. We have, therefore, commenced discussions with the Ministry of Finance and Ghana Revenue Authority, to bring clarity to the application of the Vehicle Income Tax”.
In the 2021 budget reading, government announced the suspension of vehicle income tax for commercial public transport. The Caretaker Finance Minister, Osei Kyei Mensah, indicated that this is aimed at reducing the cost of transportation.
Presenting the 2021 Budget statement, the Suame MP further noted that, government in 2020 outlined a number of initiatives to cushion the effect of the pandemic on the populace.
“Some sectors of the economy and sections of the population, however, continue to suffer the devastating consequences of the pandemic.”
The Parliamentary Affairs Minister averred that “Government is, therefore, rolling out these additional reliefs for different sections of the population especially those hardest hit by the pandemic”.
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