02 May 2017 17:40pm
WINDHOEK, 02 MAY (NAMPA) The increasing demand for maintenance of the Namibian road network, as well as the need for new roads, have forced the Road Fund Administration (RFA) to increase the Road User Charges (RUC).
RFA Chief Executive Officer, Ali Ipinge during a media conference held in the capital on Tuesday, made this announcement.
The RUCs have been increased with seven per cent, effective as of 01 May, with the aim of narrowing the gap between the ever-increasing road infrastructure capital expenditure (new roads) and revenue collection from RUCs.
The increase affects the Annual Motor Vehicle License and Vehicle Registration Fees; Cross Border Charges of Entry Fees; Mass Distance Charges or Traveling Distance Charges; Abnormal Load Fees; and Fuel Levies.
Ipinge said the need to maintain, preserve and rehabilitate the national road network has become ever more critical, especially in supporting Governments National Development Plan 5, Harambee Prosperity Plan, Vision 2030 and Namibias general economic growth.
He said 80 per cent of the collected revenue is channelled to the Roads Authority (RA) for the maintenance and rehabilitation of the national road network through local authorities and regional councils, the Namibian Police Force, National Road Safety Council and the RFA.
Programme Management, Policy and Advice Executive at the RFA, Rianus !Gonteb said the vehicle population results in a natural depreciation in the condition of Namibias roads, creating an additional financial gap of N.dollars 170 million per annum to sustain its minimum maintenance.
!Gonteb said the current economic situation in Namibia has translated into a slower growth in the sales of new vehicles, negatively impacting the income from the registering and licensing of vehicles. This is the second largest revenue source for the RFA, representing a total of 27 per cent revenue.
It is anticipated that the low trend in vehicle sales will continue for the 2017/2018 financial year, making the tariff adjustment important.
The RFA is a State-owned/Public Enterprise established by an Act of Parliament (Act 18 of 1999) with the main objective to manage the Namibian Road User Charging System (RUCS) in a manner as to secure and allocate sufficient funding for the achievement of a safe and economically efficient road sector.