The Coalition of Transport Unions and Associations has issued a stark ultimatum to the government, warning of a 20% increase in transport fares within the next 13 days if what they refer to as “nuisance taxes” are not abolished. The Coalition’s demand centers around the removal of specific taxes from the petroleum price structure, as they argue that these levies are no longer justifiable and are imposing undue burdens on drivers and consumers.
The call for action comes after weeks of escalating tensions between the Coalition and the government over taxation policies. The Coalition specifically points to taxes including the energy sector levy, fuel marking margin, sanitation and pollution levy, and the special petroleum tax as the primary sources of contention. According to David Agboado, the National Public Relations Officer for the Concerned Drivers Association, these taxes have outlived their purpose and are placing unnecessary pressure on drivers and consumers alike.
“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,” Agboado emphasized during an interview on Eyewitness News on Citi FM in Accra.
The Coalition’s threat to implement a 20% fare increase is rooted in their assessment of the rising costs within the industry. They have taken into account factors such as fuel prices, lubricant expenses, spare parts, and overall car maintenance costs when calculating the proposed increase.
The government now faces a pivotal decision as it navigates these demands. The Coalition’s stance underscores the urgency of addressing taxation concerns to avoid widespread transportation disruptions. If the government does not respond favorably to their requests within the stipulated timeframe, commuters could soon find themselves grappling with a significant surge in transport fares.
As the nation watches closely, the outcome of this high-stakes standoff will have far-reaching implications for both the transportation sector and the broader public.
Source: citinewsroom
