Member of Parliament for Ofoase Ayirebi and a member of the Finance Committee in Parliament, Kojo Oppong Nkrumah has lamented over the 15% increment in transport fares.
According to him, it would have been prudent for operators to maintain their old prices following the new tax regime [tax cuts] which has taken effect. The new tax regime came into effect from March 31, 2017, following the amendment of some tax laws.
Changes to the tax system follows the repeal of the Customs and Excise (Petroleum Taxes and Petroleum Related Levies) Act of 2005, Act 685, and amendment of the Special Petroleum Tax Act, 2014 (Act 879).
Following the amendment, the tax rate on petroleum products has been reduced from 17.5 per cent to 15 per cent. However, the transport operators yesterday [Monday] announced a 15% increment in transport fares which is expected to take effect April, 6, 2017. According to a statement released, the increment is line with the Administrative Instrument on public fares.
The statement said, ‘’the road transport operators have reviewed the prices of various elements that go into running of commercial transport services and have increased road transport fares by 15%.’’ The increment the statement further indicated, cover the following transport operators; Intra-City (Trotro); Inter-City (Long Distance) and Taxi Cabs.
But Kojo Oppong Nkrumah was of the view that, the transport operators could have exercised patience in increasing their fares. Government he explained has shown commitment in fulfilling its campaign promises.
‘’The campaign promise to cut nuisance taxes; to ensure businesses are relieved, has taken effect. What is left is for us to ensure that the various agencies will do their part so Ghanaians benefit fully from the tax cuts-so our efforts will not be in vain. One of such worrying situation is the increment in transport fares. We expected that, transport fares would have been maintained due to the reduction on petroleum tax and spare parts. The increment should not have been rushed because Ghanaians are lamenting over the increment. They are of the view that, the tax cuts should have led to a reduction in fares or the old fares maintained,’’ he said.
He hinted that, government will meet with the various stakeholders on the matter.
Mr. Oppong Nkrumah who is also a Deputy Minister designate for Information said, although the NPP government is only three months old, we have started delivering on our campaign promises, and with God on our side, we will deliver on the rest, he noted.
He was speaking in an interview with Kwaku Owusu Frimpong host of Frontline on Rainbow Radio, UK.
Source: rainbowradioonline.com
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Oppong, come again on the reduction on duties on spare parts. Your government is now sending a relief to ECOWAS. The duties are still been charged. This populist tax reductions will not have effect on Abosey Okai dealers. The same transport operators were been pushed behind the scenes to increase fares. The seed you planted is bearing fruits. Oppong, you should have benn mentioning some of these when your were at Joy fm.
whenever i see the caliber of ple that this going to form this npp govt then i become soo relieved and see the light at the end of the tunnel. i just hope they wont be greedy bastards like those no brain ple in the ndc.
"Spare parts dealers should rather be talked to ,to also decrease their prices and not increase it for abnormal profit when you were braking even." How so Naa. We are in an economy in which the laws of demand and supply rules. How do the spare parts dealers recoup their investment in Nana Addo's campaign if they do not earn abnormal profits now. Buy the way I hear they are discussing a definition of spare parts before they can decide on which items to be free of tax or not
I am disappointed at the political person you've become. I had profound respect for you but you've lost all objectivity now.
WELL SAID, THANKS A LOT.
When I read the letter about the increment, I only asked one question. Do people really understand business and their basic responsibilities. Fares should have been increased earlier, the ordinary person could understand. But increasing fares at the time the prices of petroleum products have decreased three consecutive times. I don't get it. Spare parts dealers should rather be talked to ,to also decrease their prices and not increase it for abnormal profit when you were braking even. Government should negotiating to cancel such increase with due respect to our cherished drivers. We need to build Ghana together and not find a way to bring hardship to the ordinary people. I am not and never affected by increment in fares because in all humility and to the Glory of God, I hardly pick public transport.(Am not a politician please) I was only moved to think about the ordinary person. My wish and prayer is to see Ghana were prices stay stable for a long time.It is possible, it is everyone's duty. God bless us all to help in the nation building.