Friday, March 29, 2024

Increase fuel levy, says permsec

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WORKS and Supply Permanent Secretary Watson Ng’ambi has said the fuel levy, which is a more reliable source for road projects, should be increased to enable the Road Development Agency (RDA) carry out more works.

Speaking yesterday when he appeared before the parliamentary estimates committee, Mr Ng’ambi said his ministry through RDA, wanted the fuel levy increased because it was a more reliable source of finances as compared to donors and other sources.

He said to assure consistent finances for road works, the fuel levy should be increased because it was directly used on road projects.

“The fuel levy charge should be increased in order to boost funding to the road sector because it is a reliable and dedicated source of funding,” Mr Ng’ambi told the committee chaired by Bweengwa MP Highvie Hamududu (UPND).

Mr Ng’ambi said while the fuel levy would be increased, the excise duty should be reduced so that there was a less impact on the pump price.

Of all the funds the ministry received in the first quarter of the year much of it was from fuel levy.

Out of the K1.3 billion quarterly target collection, the ministry collected K1.06 billion and that some capital projects had been undertaken while some of them were still on-going.

Mr Ng’ambi also agreed with Chongwe Member of Parliament Sylvia Masebo (MMD) that all ministries should carry out construction works through the Ministry of Works and Supply to avoid shoddy works.

The decision by donor countries to suspend funding to the road sector had affected RDA programmes on roadworks.

He said the freezing of donor funding was unexpected and had come at a time when there was an increase in road projects and the earlier the difference was resolved, the better.

Responding to Mbabala MP Emmanuel Hachipuka (UPND) who wanted to know what the stand-off with donors was about, RDA director Erasmus Chilundika said most donors had said they would suspend funding until queries in the auditor general’s report were sorted out.

Mr Chilundika said measures had been put in place to rectify the anomalies because the agency valued the office of the auditor general.

17 COMMENTS

  1. It would be more justifiable if you can show us what works have been done with fuel levy collected from inseption. i.e total collections from between x and y was so much and this was used to rehabilitate the following roads, cost of rehabilitation was so much paid to so and so. attached is the invoices and bill of quantities.

    Show us then increase imwe ba pumpwe!!!!!

  2. So in other words, GRZ is simply saying it can not manage to put up a toll road collection sysem in place? Such a system can even help decongest the roads, which can also lead to less carbon omissions making the enviroment cleaner. Zed infrastucture is such an eyesore mwebantu! #-o

  3. I agree, increase the levy but for government and MMD people but reduce for rest. That would be best. Infact tax the presidential plane coz it makes a lot of mileage!

  4. whaaaaaaaaaat? what a govt???no consideration for its people zoona….zesco is also proposing a hike in tariffs…just reduce on cabinet size and expenditure.
    by the way u havent told us the truth about Veep GK….is he still breathing or not?

  5. Why do these people want to heap us with more taxes when only a few elite hoodlums are enjoying?On top of all these, there is carbon tax to be paid on top on the other taxes incurred by motorists

  6. …just looking for other sources for their pocket money since donors are not giving anymore[-(. ala donor na konya:d

  7. I understand the need for a government to raise finances but increasing the fuel levy is a short term fix. This proposal only increases the cost of doing business in Zambia. This reduces the governments main source of income, taxable personal and corporate income.

    Asking a department/agency to fund large capital projects is not sustainable/unreasonable. Central Government (Finance & Planning) needs to prioritize these project and allocate funds to thier completion. They need to identify projects that would add most value to Zambia’s economy.They must also be disciplined in not using these allocated funds elsewhere. Governments aim is to reduce the cost of doing business not raise it.

  8. Mr. Ngambi is wrong. The right position is the ERB should reduce both the fuel levy and excice duty so that fuel prices are lowered that way many people will afford to buy fuel and travel on business errands around the country. They will collect more money from larger volumes sold as well as taxes collected from the increased business actvity.

  9. This is what happens when you have DWARFED MINDS in Office as Leaders. The solution is simple, tax the Mines and get enough Money to do the Roads and othe infrastructure needed. Why can’t these dwarfted minded fellows do this simple exercise. All the Cargo going to and from the Mines is on our Roads all the times, and this Cargo is putting a tore on them. I think any other party than the MMD can do better in this regard

  10. I wonder why they are not building trollgates in the main roads to help collect money for road maintances. Increasing levy means increasing the cost of fuel which will result in the shooting of prices of items on the market. All those expenses goes to the customers. It will the poor Zambian paying that tax.

  11. Ngambi’s bootlicking has shocked me, on what basis was he making his comments. Did he want these changes in the next budget or sort of immediately or what?

  12. U dull bloggers,he said INCREASE THE FUEL LEVY and REDUCE EXISE DUTY. so that the increase wont b felt at the pump price.eish,comprehension is a problem for sum of you. Dont just coment without contributing. Toll gates is also a gud idea as well that shud also be introduced

  13. Yaba, U dull bloggers,he said INCREASE THE FUEL LEVY and REDUCE EXISE DUTY. so that the increase wont b felt at the pump price.eish,comprehension is a problem for sum of you. Dont just coment without contributing. Toll gates is also a gud idea as well that shud also be introduced

  14. Ba Zodie, kindly dont be judgemental. Some bloggers have said alot of sensible things and you have said nothing but rebuke. Do you think these guys (MMD) are capable of reducing tax? It is a fact that Govt needs money to undertake development projects, but they need to look to other avenues like mineral tax which experts believe has not been fully utilized. They -MMD- need to control expenditure by e.g reduce on foreign trips, reduce the size of govt, fight corruption in govt to reduce thefts of public funds. These guys know what they need to do but, for reasons best kmown to themselves ignore good advise. So Kuya bebeleeeeee! MMD, Zwaaa!!!!!

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