House panel asks govt to roll back transport fare hike decision

KATHMANDU, Oct 29:

Following widespread criticisms against the transport fare hike, a sub-committee under the industry, commerce and consumers´ interest relations committee of parliament has directed the government not to implement the fare hike immediately.

A meeting of supply and consumers´ interests sub-committee held on Wednesday morning urged the Ministry of Physical Infrastructure and Transport (MoPIT) not to enforce the hike saying the hike proposed by the ministry is not scientific.

The Department of Transport Management (DoTM) under MoPIT was all set to enforce fare hike of 5.63 percent from November 1. “

"Since the transport fare has been hiked unscientifically, the sub-committee has asked the ministry to roll back the decision. We have asked the government to form a committee comprising all stakeholders to take a final decision on the issu”," Subash Chandra Shah Thakuri, chairman of the sub-committee told Republica. He also said the transport fare hike was irrelevant at a time when fuel prices have gone down. “

"While the Ministry of Commerce and Supplies is slashing the price of petroleum products, hiking transport fares makes no sense. Thus, it should be immediately rolled ba”k," he added.

The DoTM has also decided to raise taxi fares by 6.58 percent and fares of heavy vehicles by 5.27 percent.

The decision to hike transport fare had drawn public outcry with consumer rights activists accusing the government of taking anti-consumer decision.

The parliamentary sub-committee has also instructed the government to form a commission to take a final decision on the issue as well as review the indicators that are taken into consideration while raising transport fares.“

"The indicators that are taken into consideration currently for transport fare adjustment are not enou”h," said sub-committee´s chairman Thakur“. "So, the committee has urged the government to form a commission comprising all stakeholders to review the transport fare as well as indicators taken into consideration for the sa”e," he added.

Currently, transport fares are revised taking into consideration 12 indicators, which include tax, insurance premium of the vehicle, occupancy rate, bank´s interest rate and fuel price, among others.

MoPIT secretary Tulasi Prasad Sitaula said they will take a decision ´in line´ with the sub-committee´s directive on Thursday. A senior level official at MoPIT told Republica that they will withdraw the fare hike on Thursday.“

"The ministry is bound to abide by the instructions of the parliamentary committee. Since we had not published the notice for transport fare hike in the Nepal gazette, we will withdraw the decision as asked by the sub-committ”e," the high-level official told Republica upon the condition of anonymity.

Transport Entrepreneurs, however, say they will enforce the fare hik“. "Fare hike is our compulsion. The government should tame the inflation before deciding to withdraw its decision on transport fare hi”e," general secretary of Federation of Nepalese National Transport Entrepreneurs, Dol Nath Khanal, sai“. "Passengers will be charged hiked fare from Saturday onwar”s."

Source: Republica