VAT imposition sparks picket by Mahdia, Lethem minibus operatives
By Melanie Allicock
Kaieteur News
January 5, 2007
Commuters to Lethem and Mahdia may soon be forced to pay increased fares if there is no reconsideration of the imposition of Value Added Tax (VAT) to the transportation services.
This opinion was expressed by several minibus operatives when they staged brief picketing exercises at the Mahdia Bus Park in the city, and outside the Office of the President yesterday.
The strike action, according to Peter Alleyne, a minibus operator, was invoked after word of an increase in cost for minibuses using the Mekdeci-controlled Mahdia crossing started circulating.
The fare, which stood at $14,000, is said to have been increased to $16,000 with the implementation of VAT.
This, according to Alleyne, will greatly affect minibus operatives and residents, as well as miners, who have all vowed to be a part of the picketing exercises which, he claims, will persist until an acceptable change is effected.
Yesterday, at a meeting with Prime Minister Samuel Hinds, at his office, the minibus operators' fears were somewhat appeased with the assurance that some consideration would be given to their representation, as it relates to the VAT for road services.
The Prime Minister, however, argued that the implementation of taxes is imperative, since somebody has to be responsible for the services offered by the Government.
He further informed the minibus operatives that, while consideration will be given, the increase in the crossing fare is legitimate, since it is in accordance with the rules and regulations associated with the implementation of the VAT. As such, the Prime Minister asserted that the additional money charged will be remitted to the Guyana Revenue Authority as taxes.
The operators, who seemed bent on condemning the operations of the Mekdeci company as regards control of the crossing and the trail to Lethem, raised numerous concerns. Some of the minibus operatives questioned why Mekdeci has, over the years, been given sole control of the trail, which they claim is in a pot-holed and unsightly state.
In Mekdeci's defence, the Prime Minister revealed that, on several occasions, the company had opted to withdraw from the trail's upkeep, but he (the Prime Minister) urged the entity to stay on.
Hinds further told the concerned individuals that while Mekdeci's removal would please the hearts of many, the action will eventually be short-lived. He cited the intricacies associated in the maintenance of the trail, and Mekdeci's capability to do so adequately.
He, however, revealed that some time in the near future efforts will be made to offer a relevant contract to a suitable entity.
Meanwhile, the minibus operators are claiming that the $5,000 fare passengers are accustomed to paying may be raised to $7,000 in order to facilitate the VAT obligation.
But this measure, they insist, will be instituted as a last resort, since every effort will be made to combat the increase.
According to Alleyne, picketing will continue as the authorities set about reconsidering the VAT.
He noted that the displays of displeasure are set for the Mahdia bus park and Mahdia trail in the coming days.
Another meeting to address the issue is set for Monday, and the owners/operators are expected to meet with the Prime Minister; Minister of Tourism, Industry and Commerce, Manniram Prashad; and hopefully, President Bharrat Jagdeo, Alleyne said.