The recently announced ten per cent reduction of excise tax on gasoline will cost the government millions of dollars, but will ensure that the fuel remains below $1,000 per gallon and that in turn there would be no fare increases.
According to a press release from GINA, the Ministry of Tourism, Industry and Commerce has also asked minibus drivers to submit a quota of the spare parts they use so a decision could be made on whether there should be a reduction in the taxes on these items.
The release said these measures are aimed at keeping the cost of transportation down and the Commerce Ministry has also asked the Guyana National Bureau of Standards to monitor used tyres since it was recognized that minibus drivers could not afford new ones. It added that the interventions to keep the cost of gasoline down had begun 18 months ago.
GINA noted that over the years there has been a progressive reduction of fuel excise tax from 50 per cent on gasoline at the beginning of 2007 to seven per cent at present. Diesel is now tax free, the release said, and there is no taxation or duty on kerosene or cooking gas.
