KUALA LUMPUR: The government should reconsider its decision to defer the new fare revision for express buses which was announced by the Land Public Transport Commission (SPAD).
The new fares were expected to come into effect in May.
Calling the revision of fare structure a timely move, the Malay Peninsula Malaysia Express Buses Association (Pembawa) president Tajudin Mohd Yunus said the last fare revision was in 2008.
He said the new fare structure would also lessen the burden of bus operators as the operating expenditure had been rising steadily especially now with the implementation of the Goods and Services Tax (GST).
Among the items that have seen an increase due to the GST were lubricants, tyres and bus spare parts and it was learnt that a single-deck coach chassis costs about RM270,000 and the price of a complete coach would be around RM480,000 before GST.
On March 19, the Land Public Transport Commission (SPAD) had announced the new adjustment rates for taxis, express buses, and rail transport.
Taxi and hire care fares had increased by between 20 per cent and 40 per cent with immediate effect, while express bus fares were to go up 22.6 per cent effective May 15.
Under the new fare structure, the current fare for express buses would increase from 0.93 sen per km to 11.4 sen per km, for example, a ticket from Kuala Lumpur to Kota Bharu, Kelantan would cost RM52.80 instead of RM44 previously.
However, Minister in Prime Minister’s Department Nancy Shukri announced on March 23, that while implementation of new rates for taxis could go on, the implementation for the new fares for express buses and trains would be deferred until further notice.
Tajudin also said the new fares were reasonable, as their last fare hike was five years ago and it was vital as the operators want to provide the best service to customers despite the burden they face from the increase in the price of goods.
At the same time, he called on the government to consider allowing bus operators and the industry to be zero-rated, as the extra operational cost would take a toll on the companies.
“The survival and sustainability of the industry is at stake, should the new fares be deferred until further notice. The reduced revenue will be a strain for the industry,” Tajudin added.
There are more than 200 bus operators under the association which comprises of 600 express buses and 12,000 drivers.