Roads Fund Administration

The Roads Fund Administration Act provides for the following to be the designated sources of income of the Roads Fund: (a) Roads Fund fuel levy (b) International transit fees (c) Appropriations by Parliament for the purposes of the Roads Fund (d) A percentage of road user levies including tariffs, taxes and tolls (e) Such monies as may be paid to the Roads Fund by way of loans, grants or donations (8) Is the Roads Fund currently getting collections from all the designated sources of its income? Since the RFA became operational in May 2007, the revenues for the Roads Fund have been derived only from Fuel levy and International transit fees. The other three designated sources have remained unavailable to the Roads Fund and the RFA is lobbying the Ministry of Finance to start collecting from these sources as well. (9) How are Roads Fund fuel levies and International transit fees collected? Fuel levy is collected, on behalf of the RFA, by the Malawi Energy Regulatory Authority (MERA) from companies that import petrol and diesel into the country. RFA has offices and revenue clerks who collect International transit fees at the country's four busiest international borders of Songwe, Mchinji, Dedza and Mwanza. On behalf of the RFA, the Malawi Revenue Authority (MRA) collects International transit fees at all other borders such as Marka in Nsanje, Muloza in Mulanje, Chiponde in Mangochi, Biriwiri in Ntcheu and Mqocha in Mzimba. (10) Is the Roads Fund getting all Fuel levies and International transit fees due to it? The main challenge in fuel levy collections has been the difficulties MERA face in collecting the levies from petroleum importing companies that are not part of the Petroleum Importers Limited (PIL) consortium. Assurances have however been given by MERA that such companies are being made to comply. A small number of foreign vehicles have been found to be enteringMalawiwithout paying International transit fees. Such vehicles are often tracked down and stopped by RFA's Transit Fees Inspectors during surprise checks or at permanent road blocks in country and are made to pay the defaulted transit fees plus fines. (11) What are the current Fuel levy and International transit fees rates? The Fuel levy rates are at MK28.70 per litre of petrol and MK23.70 per litre of diesel since 1st February 2009. International transit fees, which are payable in US Dollars per 100 kilometers or part thereof travelled inMalawi, are charged at different rates depending on the type and origin of the vehicle. The current rates are as follows: International transit fees charges per 100 Kilometers COMESAUS$ MozambiqueUS$ TanzaniaUS$ Multiple Axels