PSVs call again for ease on petroleum products to save the sector from collapse

The Alliance Owners of Public Transport is calling on the authorities to drop either the Value Added Tax or the excise tax on petroleum products for all public service vehicles as petrol costs continue to soar.

Communications, Information and Marketing Officer Mark Haynes told Barbados TODAY that the latest petroleum increase that raised gasoline to $4.13 per litre and $3.45 for diesel would have a “debilitating” impact that could threaten the survival of many in the sector.

Haynes added that the discussions between stakeholders and Minister of Transport, Works and Water Resources Santia Bradshaw, alluded to by Minister of Energy and Business Development Kerrie Symmonds, had not yet included a discussion on fuel costs.

“I think that the government either has to remove the consumption tax or lower the excise tax,” Haynes declared.

“Government has control over that and if the government lowers the excise tax, that will help the workers in the sector one way or another. What is so difficult about this? Is the government going to let the sector die, after coming to the government’s aid in the past when the government did not have electric buses? Government needs to do better.”

Haynes said in addition to the high oil prices, the sector was also facing low ridership with many still unemployed or working from home. He added that although they are members of the private sector, PSVs provide an invaluable service to the public and should not be sidestepped while other sectors benefit from relief.

“The PSV sector must be given benefits equally,” said Haynes.

According to the association spokesman, stakeholders were invited to a courtesy call with Minister Bradshaw, but there was no discussion on the troubling issue of increasing fuel costs.

“That matter has not been raised with her as an issue per se, but of course, the next time we meet with her, it is our intention to raise this matter as an item on the agenda, because it continues to permeate the sector and place the sector under stress,” said Haynes.

“There must be some kind of coping subsidy or some kind of relief one way or the other. We cannot continue with this situation in a very unabated way, because how can the sector survive in a time like this? We know that everybody will raise the Russia-Ukraine situation, but notwithstanding this, we think that the sector which contributes to Barbados’ GDP, should benefit from the government in the form of the lowering of gas one way or the other,” he said.

Unlike owners of private vehicles, PSV owners are required to pay an annual road tax. Their fee structure is fixed and regulated by the government.

Haynes noted that under the previous administration, the practice of PSVs filling their tanks at the Transport Board’s Roebuck Street, St Michael was discontinued by the current government.

“My thinking is that if it was an illegal act, just go to the Parliament and make it legal and create the mechanism for them to come in there and fill their vehicles so that they wouldn’t have to pay the VAT on the petrol. That is not rocket science, it can be done and it should be done expeditiously so that the sector would get an ease,” said Haynes.

“The Transport Board gets an annual $40 million subvention from the government and we do not get that, but what I am saying is that although we do not benefit from that, at least ease us on the pump,” he added.

He added that Minister Symmonds’ call for more people to revert to carpooling would do the sector no favours and predicted that eventually, PSVs would stop running at night altogether.
kareemsmith@barbadostoday.bb