APNU calls on Govt. to reduce airline travel tax

APNU calls on Govt. to reduce airline travel tax

As the Government and the public continue to complain about the high cost of airline tickets from Guyana, the Opposition group A Partnership for National Unity believes the Government itself could assist in getting the cost down.

APNU Executive and Shadow Minister of Tourism, Joe Harmon has written to Works and Transportation Minister Robeson Benn on the issue and has pointed out that the Government could reduce the travel tax it charges on airline tickets as a way of cushioning the ticket prices.

In his letter, Harmon stated that “having regard to the recent steep increase in the cost of airline tickets for travel to and from Guyana and the claim by Airlines that the increased fares are unavoidable, I wish to strongly recommend that the government travel voucher tax of 15% which is a component of the ticket cost be reduced by 10 % to help cushion the impact on the Guyanese travelling public.”

Harmon said he hopes that the government sees the wisdom in his recommendation and “act swiftly upon it”.

The Government of Guyana has publicly chided Caribbean Airlines for its high ticket prices. The Tourism Minister Irfaan Ali openly criticised the airline as one that is “ripping” off the Guyanese public with its high fares. Ali said the Government has been in talk with the airline about the fares but the carrier has not budged from the high costs. Over the next two months, a return ticket from Guyana to New York is priced at over US$1000 inclusive of all taxes.

The Opposition’s position is that by reducing the taxes on that fare by 10%, the “flying public” would feel less of a squeeze on their pockets and such a decision could ultimately force the airline to re-examine its price structure.

Just last week at the CARICOM Heads of Government Meeting in Trinidad and Tobago, Grenada’s Prime Minister Keith Mitchell called on regional governments to look at their tax structures on airline tickets.

“As governments, the time has also come for us to look at our approach to taxation on travel tickets. We must appreciate, that in most instances the taxes are so much more than the basic cost of the tickets, thus driving up the cost of intra-regional travel”, Mitchell told the CARICOM meeting.

Caribbean Airlines is the only carrier serving the Guyana market with daily flights to the North American market. Surinam Airways operates just two flights per week to Miami. Caribbean  Airlines serves the Miami, Fort Lauderdale, New York, Toronto and a number of Caribbean destinations out off Guyana via Port of Spain, Trinidad.

Guyana recently accorded the Trinidad owned carrier, Guyana Flag Carrier Status.

(Filed: 9th July 2013)

3 Responses to "APNU calls on Govt. to reduce airline travel tax"

    You must be logged in to post a comment Login