With a few days to the implementation of the new taxes that were introduced by the government in the 2021 budget statement, some driver associations are already hinting at an increase in transport fares.

According to the Chairman of the Committed Drivers Association, Charles Danso, the taxes will be passed on to passengers by increasing fares.

“Definitely, whenever the government imposes taxes on us, we too have to pass it on to the final consumer.”

He however indicated that any attempt by the government to cap the increment will be strongly resisted.
“Whenever they increase it, nobody should tell us that, they are going to put 5% or 10% on transport fares. We will not agree to any percentage of that sort unless we also calculate the money we are going to pay to the government.”

The new taxes announced in the 2021 budget are set to take effect from May 1, 2021.

These new taxes are as a result of the imposition of an Energy Sector Recovery Levy of GHS 20 pesewas per litre of petrol/diesel and 18 pesewas per kg on Liquefied Petroleum Gas (LPG).

In addition, the imposition of a Sanitation and Pollution Levy of GHS10 pesewas per litre of petrol and diesel respectively will contribute to the new tax.

Also taking effect on May 1 will be the COVID-19 Health Recovery Levy Act, 2021 (Act 1068) and the Energy Sector Levy (Amendment) Act, 2021 (Act 1064).