Owners of 25-seater maxi taxis, who invested on average of over $600,000—on a government promise of getting hefty tax rebates to increase the seating capacity for passengers as long as 15 years ago—began collecting their money yesterday.
A total of 19 owners collected cheques totalling almost $2 million at the Ministry of Transport, Tower D, Waterfront Complex, Port-of-Spain. The remainder of the money will be distributed in two other tranches to the other 248 recipients.
Vice-president of the Association of Maxi Taxis Linus Phillip said in 2005 maxi taxi owners were approached by then transport minister Franklin Khan to upgrade to big maxis with a promise of getting Value Added Tax (15 per cent) and Motor Vehicle Tax refunded.
The average cost of a 25-seater is about $600,000 and Motor Vehicle Tax stands at $33,700 and VAT refunds averaged at $90,000.
Government’s commitment to refund the outstanding money was announced by Finance Minister Larry Howai in the 2014 budget statement.
Howai, whose staff played a critical role in assessing the 267 applications, was scheduled to attend yesterday’s event but was absent. A total of $35 million has been budgeted to meet all outstanding payouts.
Permanent Secretary in the Ministry of Transport Verna Johnson said 99 per cent of all applications had been approved with one application still being assessed.
Transport Minister Stephen Cadiz applauded the maxi taxi associations for working with the government to resolve the long-standing issue. He assured that “all outstanding issues” would be closed, including the use of the City Gate transportation hub, Port-of-Spain, and the maintenance of the facility.
The maxi taxi associations had challenged a one dollar a trip user fee imposed in 2001 by the Public Transport Service Corporation and won their case in the Privy Council in 2010.
Phillip said an audit of that matter was still pending as to how maxi taxi owners can be refunded. Phillip said not much headway had been made on that matter but was optimistic that the matter can be resolved through dialogue.
He said the settlement of the rebate on taxes was a “ very long, dreary, process” and some members of the association had lost hope in ever getting the money.
He congratulated his membership for their patience saying that it was “not everything you have to protest for.”
President of the Association of Maxi Taxis Eon Hewitt urged maxi taxi owners to “use the money wisely.”
One recipient, Rickie Balgobin, who bought his big maxi in 2009, said he had lost hope of getting the refund but intends to use his unexpected wealth to invest “in a piece of land or housing.” He suggested the taxes should have been subtracted at the time of purchase of the vehicle so that the loan would have been reduced.
Stamping out corruption
Cadiz said he was optimistic that legislation governing the creation of the Motor Vehicle Authority (MVA), scheduled to be debated in the Senate on May 12, would radically transform the current Licensing Authority.
He said the headquarters of the MVA, located in Caroni, was 97 per cent complete and anticipated that it would be in operation by June.
He said he was aware of allegations of corruption at the Licensing Authority for almost every transaction and believes the computerisation of the system would prohibit such occurrences.
The MVA, he said, would create a business-like system, efficient and effective, with applications being dealt with in “real time.”
The new system would also help in identifying vehicles five years and older which needed to be inspected, he said.
Cadiz said there were also plans to construct an elevated pedestrian walkover from City Gate—connecting the Waterfront Complex, the Ferry Service and the Water Taxi Terminal.
Phillip said the association also had a proposal to create an inner-city transportation network, with CNG vehicles to reduce the carbon footprint and confront the illegal PH taxis.
He said at present “people are like wild chicken all over the capital” looking for PH taxis to get to their destination and that was not effective or reliable.