Local taxi services say while they are pleased with the concessions granted by the government, the 25% reduction in excise tax on imported cars is too small.
President of the Guyana Taxi Services Association, Patrick Brassington, said they realised this after having worked out the modalities.
Excise tax on a 1500cc car that is under five years old is set at 10 percent.
“If a car is bought for $2 million, then the excise tax would be $200,000. Twenty-five per cent of that is $35,000. That is not much,” Brassington said. “Many of us didn’t really work it out and understand it; now all of the drivers say they won’t be taking up that offer.”
Their refusal is fuelled by the agreement to keep the car for five years after its acquisition.
“This can’t work because in this business we change cars every three years,” he pointed out.
During the October 4 meeting with President Bharrat Jagdeo, there was a 10-year waiver on motor vehicle license fee paid by registered yellow cabs that was welcomed by all the taxi service operators.
The concessions were granted to encourage taxis to participate in the yellow cab arrangement, which officially takes effect on January 1, 2011, after several extensions.
Brassington revealed that efforts were being made to have a waiver of the fee for radio sets, from the frequency management Unit. This will be addressed in a follow- up meeting with the president shortly.
The colour code agreement emerged out of a meeting in November 2009 at the Guyana International Conference Centre, where President Jagdeo outlined government’s intention to have all motor vehicles plying the hire car trade painted the same colour.
