By Precious Mtuwa
BLANTYRE-(MaraviPost) – Malawi Government, this week approved Roads Fund Administration’s (RFA) to levy a fee called Road Access Fee (RAF) to broaden its revenue collection base.
The RFA will use this revenue for maintenance and rehabilitation of public roads in the country.
Speaking during a press briefing in Blantyre, Director of Finance at the Roads Funds Administration Alexander Makhwatha, said the fee is applicable to all foreign registered small vehicles including saloons, pickups and also those that are not paying international transit fee (ITF).
Makhwatha said big trucks are already paying the fee, “that is the reason we considered including those that are not paying the fee to be help in maintaining the roads in the country.”
He added that local vehicles are already contributing to the maintenance of the roads in the country as there is a levy that they are pay.
The RFA said there will be a fixed amount of $20 per vehicle; it does not depend on distance or origin of country of the vehicle.
The RFA expects to generate US$400.000 annually.
Commenting on how the revenue will be collected the Malawi Revenue Authority (MRA) Assistant Revenue Accountant Akonda Spoon Yakobe, said this is an extension on the fee that they have already been collecting.
Yakobe said motorists issued with temporary importation permit TIP by the MRA will be required to pay the RAF at the border of entry and upon the renewal of TIP with the MRA.
He added the MRA collects ITF a system that started a long time ago; the process is the same and so they will not keep people waiting on the borders, he assured.
“It is very important that the transporters should always keep the clearance documents they get from the MRA as they may be required for verification,” said Yakobe.
Road Access Fee will roll out in the country from November 1, 2017.
