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PPP urges reversal of used tyre, older vehicle restrictions
-Govt. stands grounds
The Opposition People’s Progressive Party (PPP), yesterday joined importers to urge that Government halt plans to restrict used tyres being brought in.
PPP has urged Government to reverse plans to implement an April 1st deadline for the restriction of used tyres.
The party also wants the administration to rethink the ban on certain categories of vehicles eight years and older.
“The PPP stands in solidarity with the hundreds of businessmen and thousands of ordinary Guyanese who are being devastated by the unreasonable and unnecessary decision to ban the importation of used tyres.”
According to the party, businesses engaged in the sale of used tyres across the country are closing their operations, thereby, putting large numbers of persons out of employment and placing them and their families on the bread line.
“Thousands of owners of vehicles cannot afford to buy new tyres and are forced to resort to the purchase of used tyres to keep their vehicles driving. These include taxis and minibus operators. If these drivers are forced to park their vehicles many persons will be without a job and the impact it will have on the cost of public transportation will be massive and will affect thousands of Guyanese,” the Opposition warned in its statement yesterday.
“In the circumstances, we call upon the Government to reverse the decision banning the importation of used tyres, immediately, and to review the ban on vehicles that are eight years and older, as well. This measure has deprived ordinary working people of an opportunity to own a vehicle.”
The call would come days after the used tire association appealed for a rethink and said that they will be protesting the April 1st implementation of the restriction.
On that day, shipments of used tyres for cars, minibuses, vans, pickups and Sports Utility Vehicles will not be allowed to land. There are no changes for used tyres for trucks and other large vehicles.
The Guyana Revenue Authority (GRA) will be overseeing the monitoring.
As recent as Friday, Finance Minister, Winston Jordan, when questioned, said that the Government has already made the policy clear- April 1.
Finance Minister, Winston Jordan
He disclosed that plans for vehicles being imported to be fitted with new tyres will be tweaked as measures are being worked on to develop a standard that could allow for tyres of certain quality to enter.
“But the mass importation of used tyres… I don’t think that will change. Guyana is a dumping ground. Some of those tyres come from places you don’t even know.”
While Government has reduced taxes on new tyres from 30 to 15 percent, and VAT charges from 16 to 14, it remains to be seen how vehicle owners deal with the cost of new tyres.
Government has been arguing that measures are in keeping with a programme to green Guyana and improve road safety. A huge stock of old tyres at the Haags Bosch dump site in Eccles has created a headache for waste management managers.
GRA has also been arguing that used tyres will not last as long as new ones.
A shortage of staff at the Guyana National Bureau of Standards which currently monitors used tyres importation has made it impossible for a proper check of the used tyre imports, raising questions about safety.
Checks by Kaieteur News at a number of dealers found that they are aware and resigned to the April 1, deadline. A number of them have stocked up.
However, it will be anything but cheap for a new tyre. One for a Toyota Premio car with 16-inch rims will cost between $15,000 and $19,000, according to dealers on the East Bank.
The bus tyres are similarly priced too.
That will represent a steep ask for a used tyre which runs between $4,000 and $7,000 each.
Guyana first learnt of the plan to restrict during the budget presentation last year.
Last year, when Government presented the national budget for this year, it was made final…the deadline for used tyres importation for the categories above would be April 1st of this year.
There are scores of tyre shops around the country with at least 20 containers or an estimated 20,000 used tyres entering Guyana annually.
With the taxes on new tyres too high, many car owners had been opting for the cheaper, used tyres.
Operators had met with the Guyana Revenue Authority and warned that vehicle owners will not afford to buy new tyres.
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