Remove these five taxes or we increase fares by 20% – Transport operators dare government

The Coalition of Transport Unions and Associations has called on the government to scrap what they consider to be nuisance taxes else they will increase fares by 20%.

The Association gave the government a 13-day ultimatum to meet their demand, failure of which they will increase fares.

The National Public Relations Officer for the Concerned Drivers Association, David Agboado, noted that in order to reduce the unnecessary pressure on motorists and other consumers, the government must abolish the energy sector levy, fuel marking margin, sanitation and pollution levy, as well as the special petroleum tax.

In an interview on Accra-based Citi FM, he reiterated that, “These are the taxes that we want the government to scrap from the price build-up because they are outlived. For example, with the energy sector levy, we were told that in June 2021, they had cleared all the debts in the energy sector. Fuel marking was used when the Tema Oil Refinery (TOR) was operational. Now TOR is not operational, so the fuel marking margin is not operational. And then we have the special petroleum tax. We don’t have anything special about our fuel being made because we all bring in the end product. So that is why we are demanding that these taxes should be scrapped,” he added.

This is not the first time the coalition is meting out such threats to the government. The group earlier stated that it will raise transport costs by 20% if the government did not remove various taxes related to the rise in gasoline prices.

On how they arrived at the 20% increment, Mr Agboado explained that the cost of fuel, lubrication, spare parts, and automobiles, were taken into consideration.

NOQ

Below is a full statement earlier issued by the Association:

COALITION OF TRANSPORT UNIONS AND ASSOCIATION.

TRANSPORT FARES LIKELY TO INCREASE BY 20%

The Coalition of Transport Union and Association is calling on the government to abolish some burden taxes from the petroleum price build-up to ease the uncessary pressure on drivers and consumers.

As an association, we believe by the government abolishing the Sanitation and pullution Levy, the Energy sector Levy

Engergy debt recovery Levy and the special petroleum tax which the Supreme Court in 2015 ruled that it should be taken off, should all not have a place in the price build-up.

We will also wish to state that, the purpose of implementation and allocation of the above taxes has failed woefully and the ceased to functioning.

We trust that taking these taxes out will create a space in the price build-up to bring prices down and will ease unnecessary pressure on drivers and our stakeholders.

Below are some significant increments from last year December.

1.In December last year Car battery 13 plate was sold at 400ghc, it now 670ghc

2.Car battery 15 plate was sold at 550ghc,it now 750ghc.

3. VIP buses car tyres Rim 22.5 were sold at 2500ghc ,it now going down 3600ghc.

4.Toyota vitz rim 14/15 tyres were sold at 80ghc ,it now 200ghc home used or second hands tyres.

5.Goil engine oil was sold at 120ghc ,it now 210ghc per gallon and Brake fluid 15 now 35ghc.

6.Shocks absorbers were 180ghc now 350ghc as well as Link bar 80 now 150ghc.

7.Sprinter bus was sold at 120,000ghc now 220,000ghc, Toyota vitz was sold at 36,000ghc now 120,000ghc.

8.Sprinter tyres brand new 1000ghc now 1,700ghc, Home used tyres sprinter 360ghc now 780ghc.

9.Scion engine 3,500ghc now 13,000ghc, Electronics engine was sold at 12,000ghc now 25,0000ghc.

We are therefore giving the government two weeks to scrub these taxes out or we increase fares by 20%.

Thank you.

Long live Ghana

Long live Drivers