Business News of Thursday, 11 January 2024

Source: classfmonline.com

Okada riders to increase fares over emission tax implementation

Okada riders Okada riders

The Okada Riders Association has declared a 100 percent increase in fares in response to the government's implementation of an annual emission tax of GHC100.

In accordance with this decision, the Association has outlined new fare rates, with goods delivery now costing GHC50 and a ride from Accra to Kasoa priced at GHC150.

The announcement was made by the National Coordinator of the Association, Mr Kojo Wadja, during an interview on the Ghana Yensom morning show hosted by Odehyeeba Kofi Essuman on Accra 100.5 FM on Thursday, January 11, 2024.

Mr Wadja revealed that the cost of motorbike registration for Okada riders is approximately GHC1000, and there has been a hike in motorbike insurance from GHC100 to GHC250.

Expressing concerns, Mr Wadja highlighted that the increased financial burden has led to a reluctance among many riders to register their motorbikes.

He pointed out the lack of incentives in the business under the administration of President Nana Addo and Vice President Bawumia.

Mr Wadja lamented the perceived deception by the ruling NPP party, asserting that promises made by Vice President Dr Bawumia to the Association over the past few years remain unfulfilled.

Additionally, he mentioned that letters of reminder sent to his office have not received an acknowledgement, further exacerbating the frustrations of the Association within the current political landscape.

Meanwhile, the Ghana Private Road Transport Union (GPRTU) has restated its commitment to implementing a 60 per cent increase in transport fares in line with the introduction of the Emission Levy Bill, set to take effect in January 2024.

The recently sanctioned Emissions Levy Bill, passed by Parliament, imposes an annual fee of GH¢100 on owners of both petrol and diesel cars, starting from January 2024.

The government's intention with this tax is to promote the adoption of environmentally friendly energy sources for vehicle power, aligning with its dedication to climate-positive actions and carbon offset initiatives.

In response to this development, the GPRTU has presented a petition to the Speaker of Parliament, urging a reconsideration of the Emission Levy Bill.

Alhaji Abbas Imoro, the Public Relations Officer for GPRTU, expressed concerns about the additional tax burden on the union, citing existing financial challenges.

“We are already paying for emissions, 10 pesewas for a liter. So you can imagine 10 pesewas multiplied by 4.5 for a gallon, multiplied by the several gallons you use in a day, times 26 working days in a month.

“You can imagine how much one driver pays for it.

“We pleaded with Parliament that they should take a second look at it,” he explained to the media in an interview.

Alhaji Imoro added, “But we did indicate that if nothing is done or if nothing can be done about it, then, of course, we have other problems as well.

“We will organise ourselves and come out with an upward adjustment of lorry fares, not less than 60%