PSVs call for access to vat-free fuel as fuel prices rise and ridership falls

As petrol prices continue to rise and passenger numbers fall, operators of privately-owned public service vehicles (PSV) are pleading with the Government to come to their rescue by making provisions for them to get fuel at the pump VAT-free.

Communication, Information and Marketing Officer of the Alliance Owners of Public Transport (AOPT) Mark A Haynes has urged the Mia Mottley administration to remove the 17.5 per cent Value Added Tax (VAT) that PSV operators pay on gas and diesel, and allow operators to fill their tanks at the Transport Board’s Roebuck Street location.

He argued that the Government could put measures in place to ensure such a system is not being abused.

“I am calling on the Government of Barbados to move with alacrity to ensure that they create a mechanism to help offset the cost which continues to face the sector,” he said.

“I am calling on Government to revert to the Transport Board where the workers can go to the Transport Board and have their vehicles filled up, in which case they would not pay the 17.5 per cent VAT. If it was illegal under the [last government], I don’t see why the Government cannot go to the Parliament and make what is deemed illegal, legal,” Haynes added.

He said if PSV operators were able to get an ease in the price of fuel, it would help offset other costs. The AOPT official pointed out that in addition to having to spend on frequent repairs, PSV operators had to contend with few passengers and compete with illegal operators.

“The Government needs to create a special road unit whose remit it is to ensure they run down these guys day and night and penalise them wherever possible, because they are really impacting on the legitimate workers. We are seeing too much of this going on and it cannot continue unabated,” said Haynes.

“The sector is faced with miscellaneous costs and other costs coming at you. We have a reduction in ridership and this is impacting negatively on the sector. This is something that I think the Government is fooling around with. It is time the Government wakes up and tries to assist this sector wherever it can because this sector contributes to Barbados’ GDP,” he insisted.

Haynes said while he did not have official figures, he was aware that some PSV operators had exited the industry because they were no longer able to earn enough to meet their daily expenses.

“Some persons are exiting because the cost is astronomical, the cost is burdensome for some people and they say ‘look, I need to get out, I cannot bear this anymore’. They have to pay annual taxes and coupled with the fact that the ridership is down,” he lamented.

Adding that some operators were still paying loans for their vehicles, Haynes said: “The banks are running them down for their monies, and they have other miscellaneous costs when the vehicles break down and so on, so these are costs constantly coming at you. The sector cannot survive with this kind of environment. There has to be a change, there has to be a mechanism to defray this cost.”

Haynes said he did not accept that the Russia-Ukraine war, which has contributed to higher fuel prices on the international market, should be used as a reason for the Government not to assist the sector. marlonmadden@barbadostoday.bb