|
Government has reduced the safety net levy to increase another levy to the National Road Authority (NRA) by K420 million per annum for the maintenance of roads as demanded by the donors.
Ministry of Finance Spokesperson Patrick Zimpita said in an interview, the ministry has approved the proposal from the ministry of Transport that the NRA levy be increased from K7.70 to K8.70 per litre of petrol and K5.70 to K6.70 per litre of diesel.
He said the decision to increase the levy was reached during discussions the two ministries had with donors in the road sector who wanted an increase to the money government contributes to the sector for road maintenance.
“This was done so that the pump price of fuel should not be affected by the increase in the NRA levy. We have already approved the proposal,” he said.
Transport and Public Works minister Henry Mussa said the increase in the NRA levy was necessitated to source enough money for the maintenance of roads so that donor funds should only be used for new road construction as planed.
“The increase will translate to K420 million per annum to make sure that all funds from the donors are used for the programmed activities. During the previous administration some of the funds were going to other works outside the plan and the donors were not happy,” he said.
EU information officer Charles Undulu thanked the ministry of transport for what he described as a positive measure to make ensure that roads are properly maintained.
He said: “We have every hope that the money will be used for its intended purpose”.
Mussa said his ministry will ensure total compliance with what its cooperating partners want, saying a lot has already changed since the new administration came in and he hopes the donors will respond positively.
He said the safety net levy, which was administered by the ministry of Finance, is not a pressing issue now because it was meant for emergency during the period the donors suspended aid.
Mussa said emergency activities will now be financed through the unforeseen circumstances vote, which was included in the budget.
|
