RFA increases road user charges by 4,3 per cent
25 Apr 2019 17:20pm
WINDHOEK, 25 APR (NAMPA) - The Road Fund Administration (RFA) has announced a 4,3 per cent tariff increase for road user charges effective as of 01 May 2019.
The increase will effect fuel levies; vehicle licensing and registration fees; cross border charges; mass distance charges; abnormal load charges; and road carrier permits.
RFA Chief Executive Officer Ali Ipinge told a media conference here on Thursday the increase will bolster revenue to provide additional investment for the maintenance, preservation and rehabilitation of the national and urban road network which is critical for Namibia's transport sector programme.
RFA is well aware that continued increase of the road user charges is not sustainable in the long term, hence the adopted strategy of inflation linked increases, he said.
The RFA generates 60 per cent of its revenue from the fuel levy, which will also be adjusted from N.dollars 1.30 per litre to N.dollars 1.36 per litre next month.
Ipinge said without inflation adjustments, national and urban roads would be in bad shape. The increase is effected to sustain the road sector, despite the current economic landscape, he said.
He further indicated that the RFA contributed over N.dollars 16.5 billion to the maintenance and development of the national and urban network.