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Government slashes excise tax on gasolene
–expects to stabilize minibus fares
Government yesterday announced a reduction in the excise tax on
Another contributing factor to the hiked fares- hot plating
gasoline, even as Route 40 minibus operators insist on a hike in their traveling fares. From 15 per cent, the excise tax has been lowered to 10 per cent.
Finance Minister Dr. Ashni Singh announced that with effect from yesterday, the new excise tax would take effect. According to the Government Information Agency, the Minister explained that this decision was taken in light of the upward movement in the imported cost of gasoline. “The acquisition price on the last shipment of gasoline bought by GuyOil was US$142.85 per barrel which is an increase of 19.7 percent above the acquisition price of US$119.32 per barrel at the end of last year.”
GINA stated that the reduction of the excise tax rate on gasoline would allow GuyOil to continue to retail gasoline at $980 per gallon resulting in no increase in public transportation fares to commuters.
The standard excise tax rate on gasoline and diesel is 50 percent.
Earlier this week, the said minibus operators, and the United Minibus Union (UMU) as a whole, were calling on the Government for an official meeting to discuss the reasons why the prices should be raised.
They insisted that the minibus fares include a lot more than gasoline price, and cannot be fixed by the Ministry of Tourism or the Police. In light of their persistence, Acting Minister of Tourism, Irfan Ali, subsequently called for a meeting.
At the meeting on Thursday last, it was decided that Government will take the necessary steps to ensure gas prices stay below $1,000 per gallon, so as to make certain that the fares structure remain the same.
And while the Ministry of Tourism, Industry and Commerce is considering integrating the Union under the regulations of the Public Utilities Commission, President of the UMU, Eon Andrews, noted that that is something that the Union will not agree to.
And as such, the minibus operators are staying their grounds, maintaining that “neither the Ministry of Trade nor the Guyana Police Force has any authority to set fares.”
As of now, some commuters have been paying the increased fare from $60 to $80, while others are refusing to pay the additional $20. But, the Ministry also continues to insist that the prices are to remain the same.
One driver had initially told this newspaper that those insisting that the price remains the same, are just catering for gasoline and not spare parts and the much waiting and patience that the drivers and conductors put into their work.
He attributed the drivers’ decision to the hot plating activities where some drivers park their buses in the middle of the road to pick up passengers.
Meanwhile, the United Minibus Association says that it is still hoping to exchange further dialogues with the Ministry, since it is the only way to ensure commuters are not robbed, and minibus operators are not operating at a loss.
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