DEPUTY Prime Minister and Minister for Communications Manoa Kamikamica says keeping Fiji’s e-ticketing system for buses is an important economic decision to protect government revenue.
His comments follow Prime Minister Sitiveni Rabuka’s suggestion that cash payments could be brought back for bus trips.
“The Government spends quite a bit in assistance to the bus industry, so it’s important that revenue capture has integrity,” Mr Kamikamica told The Fiji Times.
“I’m sure the honourable Prime Minister will be talking to us, and the Minister for Transport is responsible for the actual decision on the cash side.”
He warned that a return to cash could once again lead to significant revenue leakage.
“From my perspective, if we can, it’s a good to keep the current system, because it ensures that we don’t have any wastage.
“One of the big issues with introducing cash is there’s a lot of loss. For example, the last time they introduced e-ticketing, increased collection went from about $60 million to $120m.
“So, a lot of leakage happens and all of that will happen if we don’t capture that revenue, and everybody will start having to pay through more taxes and things like that.
He said this was an economic decision.
Mr Kamikamica also clarified that the e-ticketing arrangement did not involve any direct government payments to Vodafone.
“There’s no payment to Vodafone. It’s a commercial arrangement between them and the bus companies. Government is not paying anything for e-ticketing.”