The Ministry of Works, Public Utilities and Transport has announced that there will be no increase in bus and taxi fares at this time.
The Permanent Secretary Cama Tuiloma confirmed the decision is based on the fact that VAT is refundable.
He said the notion or argument that with the increase in VAT, there should be a corresponding increase in fares for buses and taxis, is wrong.
Tuiloma added that the basis for that notion or assumption is not correct because Vat is refundable and the submissions for fare increases made by bus and taxi operators are thoroughly considered before the Minister makes a decision.
He said that it needs to be followed for proper consultations and all views to be considered before it comes to the Minister for a decision.
The decision was reached after consultations held between the Permanent Secretary in the Prime Minister’s Office Col Pio Tikoduadua, Permanent Secretary Strategic Planning Peter Wise and officials from the Ministry of Finance.
The Land Transport Authority Chief Executive Officer Naisa Tuinaceva was also present at the consultations to provide more detailed information on other issues affecting buses and taxis.
He added Government has made several concessions in the 2011 Budget to allow bus operators to reduce operational costs.
Story by: Sneh Chaudhry
No increase in bus and taxi fares
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