Business

Bus operators seek talks over fares

Written By : SHIRI LATA. The Fiji Bus Operators Association (FBOA) is keen to seek an audience with Government representatives. This was after the Government announced there would be no
24 Dec 2010 12:00

image Written By : SHIRI LATA. The Fiji Bus Operators Association (FBOA) is keen to seek an audience with Government representatives.
This was after the Government announced there would be no bus fare increase from next year.
Association president Zane Dean, said, “FBOA is confused with the statement made by Ministry of Transport permanent secretary Cama Tuiloma that there will be no bus fare increase and the decision was based on the fact that VAT was refundable.
“The fact is that VAT will increase from 12.5 per cent to 15 per cent as of January 1,” he said.
VAT, he said, was a consumer tax and by law FBOA members must collect 15 per cent on behalf of the Government and pay 15 per cent to FIRCA as stipulated by law.
“Bus operators can only pay what they collect as VAT,” Mr Dean said.
He said the industry invested approximately $6 million in new buses over the past 12 months, as agreed with the Government, for upgrading and reducing operating and maintenance costs.




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