Commuters have been warned that fares will increase once more if the cost of spare parts rises, according to a member of the GPRTU’s national communication team.
In an interview with JoyNews’ The Pulse on Friday, Samuel Amoah said that the Union takes into account four things before raising fares: the cost of gasoline, lubricants, spare parts, and taxes. As a result, any increase in any of those costs will have an impact on fares.
“Whenever we wish to raise our prices, we first examine all those factors to determine how much they have climbed proportionally, before we perform our calculations.
“Mostly, if it happens that we are coming up with an increment, we check those areas and if it [spare parts] goes up, it will also affect the transport fares,” he said.
This comes on the back of the government’s new measures it expects to help revive the economy as announced in the 2023 Budget read by the Finance Minister, Ken Ofori-Atta on Thursday. In the budget, Government announced its plan to increase revenue by raising the VAT rate by 2.5 % while also improving its revenue collection.
According to the finance minister, this will immediately boost the digitization program and road construction projects.
The 2.5% increase in Value Added Tax (VAT) has been criticized by spare parts retailers in Abossey Okai, Accra.
The decision will only make the financial struggles of the organization’s members worse, according to Eric Nsi, public relations officer for the Spare Parts Dealers Association.
Even while we had early knowledge that something similar would occur, it is sad because we made it clear to the government that we were unable to accept this…
It is simply making the financial struggles of Ghana’s citizens worse, he told JoyNews.