business

Aug. 30, 2021

STAFF REPORTER

2 min read

Accountants support taxi hike

Accountants support taxi hike

Local taxis

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PRESIDENT of the Lesotho Institute of Accountants (LIA), Lefu Mokaoane says public transport fare hike is acceptable amid the COVID-19 pandemic and the country's sluggish economy.

The industry, he said is one of the biggest contributors towards Lesotho’s economic growth, adding that had the increment not been implemented this year, that would have let to the collapse of the industry as the last increase was made about three years ago.
He said public transport operators also suffered a major loss due to the inflation rate that goes up every year coupled with other costs such as tax, maintenance and servicing of vehicles.
“If the increment could be implemented every year as per the legislature then people would get used to it and there would be no outcry as it is the case now,” he said.
He said even though the 10% increment was implemented with a view to satisfy both consumers and operators, the two parties are however, still not satisfied.

He said commuters complain that for the past two years there have been no adjustments on their salaries in spite of the fact that they need public transport on a daily basis.

They argue that no matter how little the fare increases, he said, it will still affect them financially.
Commenting on the retrenchment of factory workers, Mr Mokaoane said that is major crisis which will result in the unemployment rate sky rocketing in no time.  

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He noted that even those who still have their jobs were also affected because they had to suffer severe salary cuts and shorter working hours.

This, he said will contribute immensely to the declining economy, therefore appealing to the government to strategically look into how best it could address the job losses.

The 10% public transport fare increase is effective from October 1, with 4+1 taxi fare going up to M9 from M8.50 while mini buses will cost M8.50. LeNa

 

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