|
|
|
|
| Business |
| PPC wants safety net levy removed |
|
by
Ephraim Munthali, 04 February 2004
-
16:17:47
|
The Petroleum Pricing Committee (PPC) has recommended to government that the Temporary Safety Net Levy on petrol and paraffin be removed.
A PPC document obtained by Nation Online indicate that PPC chairman Chancellor Kaferapanjira wrote the Ministry of Natural Resources and Environmental Affairs on the subject.
But government has not responded to the recommendation, according to the document.
Principal Secretary of Natural Resources and Environmental Affairs George Mkondiwa could not be reached for his comment while Finance Minister Friday Jumbe’s phone went unanswered. Mkondiwa sits on the committee.
The PPC said it reached this decision after noting that the In-Bond Landed Costs (IBLCs) for the two products were increasing.
Sources said on Tuesday the recommendation to government is meant to cushion people from an anticipated rise in fuel prices resulting from the high demand for fuel in the United States.
The document says cold weather forecasts in the United States increased prices of heating oil and natural gas which in turn drove crude prices up.
Government collects K6.70 (0.06 cents) on Petrol while it gets K3.35 on Paraffin as Temporary Safety Net Levies.
Diesel is not levied because the gas is regarded as crucial for the delivery of goods and that it is widely used by industries.
Currently, people buy Petrol at K86.85 per litre and Diesel at K78.40 while Paraffin is being sold at K64.55.
This means that if this levy was removed, people would be buying Petrol at K80.15/litre instead of K86.85/litre, Paraffin would be sold at K61.20/litre and not K64.55 while Diesel prices would remain the same.
Other levies government collects on petrol are as follows: The PCC Levy (35 tambala), the Road Levy (K7.70), MBSCess (35 tambala), Energy Fund (50 tambala) Safety Net Levy (K2.57) and Price Stabilisation Fund (K1.69).
The Temporary Safety Net Levy is not in the national budget hence the possibility of removal.
Malawi Confederation of Chambers of Commerce and Industry (MCCCI) president Martin Kansichi said on Tuesday that too many levies on fuel are increasing the cost of production for businesses.
“Some of these levies should have been removed long time ago. Why should the private sector have to pay high taxes in everything?” Queried Kansichi.
Consumers Association of Malawi (Cama) executive director John Kapito who is a member of the PPC was non committal on the committee’s recommendation.
But he said it would be a welcome development if government decided to scrap the Temporary Levy.
Economics Association of Malawi (Ecama) spokesman Perks said the country is better off without such a levy because there is no transparency on how government utilises the money collected. |
| |
|
|
|
|
|
