Affordable & sustainable public transport

The announcement by the AAMTA (All Assam Motor Transport Association) to hike fares of buses and other public transport in the State by 50 per cent is unilateral and will burn big holes in commuters' pockets. It is a paradox that when affordable and easily accessible public transport is vital for putting the COVID-19 pandemic-ravaged economy back on the rails, the hiked fares have made it unaffordable for a large section of low-income individuals. The association has decided to charge the increased fares from passengers with effect from September 1, the day when inter-district passenger services are slated to resume in the State. The argument advanced by the Association in support of their decision is that fare hike will compensate the losses they have suffered due to the COVID-19 pandemic and hikes in petrol and diesel prices. Earlier in October last year, the association had called for an indefinite strike demanding a fare hike on the ground that running public transport services with 50 per cent passengers was not viable. They withdrew the strike on October 9 after the Transport department allowed plying of buses and other public transport with 100 per cent seat capacity. The government decided to allow the transporters to ply their vehicles with full seating capacity as a hike in fares ahead of the 2021 Assembly polls would have caused widespread resentment. In 2019, the State government approved 25 per cent hike in passenger fares in different categories of public transport services including the city buses as well as the long-distance buses. Transport services have been disrupted for a long period in the current second wave of COVID-19 as the inter-district passenger services continue to remain suspended. However, arbitrary imposition of hikes in fares will amount to passing the burden of transport owners to the commuters who are also overburdened by the economic downturn in the COVID-19 pandemic and spiralling prices of essential commodities. "Allowing the Association to unilaterally hike the fare will make commuting in public transport a luxury for lakhs of low-income households. This will further restrict the farm households from reaching out to markets and centres of economic activities for their livelihood as any of them will not be able to afford the increased fares both ways. Such restrictions bound to have cascading impact and lead to further loss of income and livelihood in pandemic-ravaged state economy. A major section of public transport commuters has been experiencing acute problem ever since most local train services in the state were suspended in the first wave of pandemic and continue to be suspended. As Northeast Frontier Railways are gradually resuming some local trainservices after relaxation in inter-district travel barring to and from Kamrup (Metropolitan) district, increased fares in buses will push more commuters to local train services which providecheapertravel than bus services. The railway authorities will have to brace for heavy rush in the event bus fares are hiked, which is unwarranted as pandemic is far from over and apprehension of a severe third wave striking the state as well as entire country has overshadowed unlocking from the current second wave. Apart from hike in fares, the AAMTA has demanded moratorium on toll payment on highways, extension of existing insurance coverage for a year to compensate for loss of income during pandemic which can be considered by the State government to provide relief to public transport owners. It will also protect the commuters from exorbitant hike in fares. Skyrocketing fuel prices have pushed the cost of running buses and other public transport vehicles which justifies the Association's demand for hike in the fare even though a hike of 50 per cent will be irrational. Reduction of fuel prices can provide relief to transporters as well as commuters. Both the Central and the State governments, however, argue that fuel prices are decided by the public sector oil-marketing companies in accordance with the international market prices. Shrinkage of revenue due to slowdown has not left much room for the Central and the State governments to reduce taxes on petrol and diesel.

Data from the 'Petroleum Planning & Analysis Cell' of the Ministry of Petroleum and Natural Gas show that the Assam government levies sales tax at the rate of 32.66% or Rs 22.63 per litre -- whichever is higher as VAT (Value Added Tax minus the rebate of Rs 5 per litre for petrol and 23.66% or Rs 17.45 per litre -- whichever is higher as VAT; minus the rebate of Rs.5 per Litre for diesel. Bringing petrol and diesel under the 'Goods & Services Tax' framework can bring down prices but the States stand to lose around Rs 2 lakh crore, according to official estimates; and, they will not agree to the proposal without alternative sources of revenue. Against this backdrop, the Assam government is making a tightrope walking between its efforts to ensure that the public transport system is sustainable for the vehicle owners and also affordable for commuters, even as the State exchequer is losing revenue by reducing Sales Tax/VAT on petrol and diesel when it is desperate to tap every source to strengthen its coffer.