Operators losing €30 to €45 per week because of increased fuel costs - GRTU
Increased prices of diesel fuel and fuel oils continue to place increasing pressure on the business community, the Chamber of Small and Medium Enterprises (GRTU) said.
The price of diesel has increased by 15c per litre since January and it appeared that the government was not realising the tremendous pressure this increase was causing transporters and distributors and all fixed equipment operators depending on fuels to operate their equipment.
“GRTU has been striving for direct support to small enterprise owners and self employed in these sectors, especially those related to the food chain, waste carriage and construction as these operators find it extremely hard to pass on extra costs to their clients as very few of these operators have a fuel price escalation clause in their contract with Local Councils, developers and other trade users of their services.
“Most buyers of their services, including government and public service authorities, find it hard to accept to change contracts with the result that operators will have to suffer increases of fuel prices themselves.
“Where the cost is passed on the impact on the general level of prices suffered by consumers is relatively very hard. GRTU finds it very difficult to comprehend why during a stage of economic development when most small operators are still suffering from a depressed market, the Minister of Finance, who is also responsible for the Economy and for Small Businesses, inflicts such an additional burden on the distribution and transport sector,” director general Vince Farrugia said.
He said that it was illogical to increase the excise duty on fuels at this particular time and the government could not blame this excise duty increase on the EU as happened when it was last increased.
“The combination of excise duty increase and the steady staggering increase in fuel prices is being felt in all sectors.
“GRTU is not satisfied that Government and the public regulator are doing enough to make sure that purchasing procedures by the suppliers are acceptable and convincing.
“The Malta Resources Authority should make sure that the price increases being put in place are only effective after making sure that procedures have been adhered to for the interest of the consumer and end user of this important fuel.”
Mr Farrugia said:
“For many operators who use heavy transport this week’s fuel increases represent loses of between 30 to 45 euros per week,” Mr Farrugia said.
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Paul Barrett
Nov 1st 2010, 17:01
If the heavy plant users moved to more efficient (less polluting) plant and transport then perhaps they will not suffer the increase in fuel bills so much, indeed they may even reduce costs in spilt oil and fuel used.
c. camilleri
Nov 1st 2010, 15:32
No one like to pay more for items or services. But is Malta not part of planet earth.? Are we not witnessing what is happening in around us? Thank heaven and the wise direction of this Govt that we have not thousands of workers losing their jobs, no cut in pensions and salaries and no increase in vat to 25%. We are the country in Europe who have no need to recourse to these measures.
So It is just spoiled and irresponsible persons who grumble during these difficult times when we all know the sufferings in other countries.
C Cassar
Nov 1st 2010, 15:21
Surely the fuel costs for business operators is classed as a business expense from a tax perspective? That implies that any of these costs can be offset from their yearly tax bill. Of course this applies only when businesses are declaring everything to the tax authorities, so I envisage this is where the problem really exists. Time for a ramp up in tax investigations for commercial enterprises, especially the smaller ones that are likely to deal in cash transactions. I'm sure that would reap considerable 'lost' income for the government and law abiding tax payers.
Paul Calleja
Nov 1st 2010, 14:15
u mhux hekk tghid! Hawn xi hadd li jibqa jiftah il-hanut tieghu jekk ikun qieghed jaghmel telf ?
Ma rridx ninstema ahdar....imma jekk mhux tajjeb ghalihom jghalqu. Gejna qisna tfal zaghar..kull haga li jigri imsieken tal-hwienet.
Jien nippretendi li meta jghidu kemm qed ihallsu, jghidu wkoll kemm qed idahhlu fi profitti...ghax mod tgorr jekk qed ikollok profitt ta 100 ewro u mod iehor jekk ikollok profitt ta 1,000 ewro jew aktar....u halluna!
Imbghad ohra....kulhadd jiftah hwienet tal-istess xorta...kemm hawn tal-mobiles per ezempju ?? mhux bil-fors si hadd se jnaqqas il bejh tieghu u jollu jaghlaq ?? Imma mbaghd tigix tgorr..ghax ikun hemm raguni ghalfejn il-klijenti tieghek ikun ghazel lill haddiehor...
J Farrugia
Nov 1st 2010, 14:05
GRTU why dont you enter into competition with enemalta so that you can see for yourselves who is conning whom.
Mark Piscopo
Nov 1st 2010, 13:54
The increase in the Water and Electricity bills, the increase in the car licenses which are increasing every year, Followed by a drastic increase in the gas cylinders. In this budget the Government made a another increase in the Fuel, alcohol, Cigarettes, and instead of giving the energy vouchers he deducted these vouchers which amount to 11million a year. The government also made a first time buyer suffer most with the drastic increase in MEPA tarrifs followed by a drastic increase in Cement. Losing aprox 45eur a week is a very difficult thing to overcome. In the Malta there is only one party who wins the elections. This is because the month before the general everything happens. People have not realized that we suffer for 4years and then we have a year of few taxes but as soon as the general election is won again by the same party we have lots of taxes again.This is a very simple story which is repeated every five years. The majority of people complain, argue and then when the time comes they go to vote to the same party they always voted!
J Farrugia
Nov 1st 2010, 14:09
That's a sign that Labour doesn't deliver. It's past is terrific and people are not going to be conned into voting it into office when everyone knows the hatred there is among its rank and file. Better the devil we know than the old labour party. Labour has gone back to the bad old days. Let them be. their funeral not the people's.
Mark Piscopo
Nov 1st 2010, 18:31
Hope that the PL will remain a strong party for the benefit of Malta. I do not agree with your quote that "Labour has gone back to the bad old days. Let them be. their funeral not the people's."
H Galea
Nov 1st 2010, 13:43
Vince, we should have elected you, and every thing will come cheep, cousumers have suffered enough by price fixes. SME should unite and use less transport.
c falzon
Nov 1st 2010, 13:33
U leeee ta u're mistaken.....il hajja m gholietx!!!! Ask Gejtu Vella u tara kif hekk jirrispondik!
Mario Micallef
Nov 1st 2010, 13:28
then as usual we the guinea pigs (customers) get to pay it...regardless if its tax evasion or lowering of their profits...
r ferriggi
Nov 1st 2010, 13:26
i am not disputing GRTU claims but may i remind readers that joe public is also losing that amount of money if not more JUST TO LIVE,,,,, JUST TO GET BY.
it is well and good that operators, business men, companies are all airing their greviances and suffering,,,,,,,,, but it seems that no one,,,,,,,,,, especially the government is airing the normal peoples increasing costs.
who is our voice??
walter caruana
Nov 1st 2010, 13:25
I consider this tax from a different angle. These business people due to the free market have the power to raise their prices liberally.The governmwnt haws no power to control their greed but haws the power to reduce their excessive profit by raising taxes. IN such cases I sgree with the idea of name and shame.