GUTA Urges Traders Not To Increase Prices Over Rise In Transport Fares

The Ghana Union of Traders Association, GUTA has begged traders in the country to stay strong and not necessarily increase the prices of some goods in the short to medium term due to the recent increase in transport fares. 

The Ghana Private Road Transport Union [GPRTU] announced a ten percent increase in transport fares to make up for increase in fuel prices.

Explaining the basis for the increment, the Union said the various components that go into the running of commercial transport services have gone up.

“This is to accommodate predominantly an increase in fuel prices,” Kwame Kuma, the National Chairman of GPRTU said in a statement, Tuesday.

Per the announcement, passengers of intra-city and intercity travels as well as shared taxis will be affected by the increase.

Commenting on the issue, General Secretary of the Greater Accra Regional branch of the Association, Nana Poku, described the move as insignificant. 

”Sincerely speaking, the increment is not that significant. Traders are being urged not to increase any commodity because of the fuel increment, maybe traders will think that, they should increase commodities to go with the current trade of fuel increment. They should not, already there are customers crying, more increment would bring more high level of expenses on people. The economy shouldn’t be that difficult for people” he observed.

The midyear budget review saw an upward adjustment in the Road Fund Levy, the Energy Debt Recovery Levy and the Price Stabilization and Recovery Levy.

On whether or not the move may necessarily trigger an increase in the prices of goods and service as transport costs of businesses will go up, Mr. Poku explained that a lot of factors may have to be considered before an increase, if possible, will be effected.

“Factors of pricing are varying as such it depends on how the input of transport fares will play out. Sometimes if the trader finds the increase very negligible, then he or she will absorb the cost and that is what most prudent business people do,”

He added: “If you will realize because the market is so competitive people might also not increase the prices of their goods but that is not to say that some businesses will not increase their prices because of the factors of their cost of operation.”

However, GUTA wanted the government to implement practical measures to strengthen revenue generation, with focus on making the existing tax regime effective rather than imposing additional taxes, adding that “the tax exemption regime must be overhauled without any further delay.”

GUTA noted that a total tax revenue of 12.9 per cent of GDP in a country where GDP was growing at the rate of over six per cent was problematic, saying “Ghana is under-performing in terms of tax revenue collection, compared to Togo, Senegal, Kenya, Burkina Faso and Cape Verde.”