Govt examining increased airfares from all ends – Benn

Public Works Minister Robeson Benn has stated that it would not be feasible for government to reduce the travel voucher taxes on airline tickets, as part of efforts to relieve Guyanese passengers of paying the high cost of air transport. Minister Benn’s comment follows a letter sent to him from shadow public infrastructure, communication, tourism, industry and commerce minister, Joseph Harmon of A Partnership for National Unity (APNU).
In the letter, Harmon issued a call for a 10 per cent reduction in government taxes on airline tickets to cushion the impact of the hike in fares on Guyanese.
He called on government, through Minister Benn, to consider reducing its travel voucher tax of 15 per cent to 10 per cent.
However, Benn said government is examining the matter of increased airfares from all ends, noting that government is in discussion with the Trinidadian government to ascertain whether it is giving a subsidy to the Caribbean Airlines entity to ensure the fares from that end remain at a stable level.
Reducing taxes
He said reducing taxes would not be viable for the government of Guyana, as that would put a strain on maintaining airport facilities and staffing.
He reminded that Fly Jamaica will commence operations this monthend, which would help to ease the current situation, while Surinam Airways will be adding more flights.
The govt is also engaged in talks with COPA Airlines to increase airlift out of Guyana.
He assured that no stone would be left unturned, but could not give a direct response as to if a reduction would be implemented.
In the letter to the minister, Harmon said the cut in the tax is proposed in light of the recent steep increase in the cost of airline tickets for travel to and from Guyana, and the claim by airline services that the increases are unavoidable.
No stone unturned
He believes the tax reduction is the only rational and practical move to relieve passengers of the burden of paying the hefty fares.
Harmon stated that it was his hope that government would seriously consider his recommendation and act swiftly upon it.
Later in a release, APNU said it is appealing on the government to take all proactive measures within its control to lower the cost of air travel to and from Guyana.
The party said since a roundtrip economy class ticket from Guyana to the United States of America now costs over US$ 1100 and the government of Guyana gets 15 per cent of the base fare plus a departure tax of Gy$ 4000, APNU is of the opinion that such a steep rise in the cost of international air travel must be addressed immediately.
Acting Tourism, Industry and Commerce Minister Irfaan Ali had recently opposed the increases in airfare ticket prices by Caribbean Airlines, accusing the regional carrier of attempting to rake in profits owing to the high demand in the Guyana market.
He does not believe the taxes pose the problem, but rather the amount of seats available to level out the demand and supply from Guyana’s end.