PROPOSED 30 CENTS FUEL TAX COULD LEAD TO HIGHER BUS FARES

MANZINI – Public transport operators are ready to seek the amendment of their proposed bus fare hike if the 30 cents fuel charge is approved.

This follows that the Minister of Finance, Neal Rijkenberg, in his budget speech, said the establishment of a Roads Agency Fund was a sustainable and permanent solution to the national roads crisis. He said the objective of this fund was to tender out all roads maintenance to the private sector. Rijkenberg said government envisaged it to be funded by the savings from shutting down government departments currently responsible for road maintenance, the road toll charges at the border crossings, additional funds from the fiscus and an additional 30 cents fuel tax that he intended to table with the Fuel Tax Bill. The proposed 30 cents fuel tax per litre shall be an addition to the already existing 35 cents fuel levy, which resulted in the collection of E1.4 billion in the past year.

Amendment

In light of this, Swaziland Local Transport Association’s (SLTA’s) Sabelo Dlamini said this could force them to seek an amendment of the already proposed bus fare hikes. He said this was because they were already operating at a loss and with the proposed levy; their businesses were bound to collapse as they were still reeling from the repercussions of the coronavirus (COVID-19) pandemic and the political unrest wherein their operations ceased. He said the unfortunate thing was that all the costs were being transferred to the consumer, whose salary was still stagnant. Dlamini said players in the transport industry should be part of the road agency in order to advocate for the betterment of the infrastructure as they were paying loads of money. “Where is the 35 cents collected currently going to as it should address the road challenges? We are just being taxed to the bone,” he said.

Meanwhile, Swaziland Consumer Forum (SWACOF) Chairman Mandla Ntshakala, said the biggest challenge for consumers was that increments and taxes were implemented without salaries. “We are still seeking government to subsidise us on transport. Also, the current 35 cents collected as fuel tax has to deal with the maintenance of the roads, not to expect more as salaries are stagnant,” Ntshakala said.

Consumers

He said consumers were already struggling with basic commodities and should this increase be implemented, it would increase costs of commodities. On the other hand, the minister of finance said increments ranging between five and 10 cents were bound to be effected by the proposed fuel levy. However, Rijkenberg said the money that they were set to spend in the increment of consumables was far lower than the benefits of the proposed pay-as-you-earn (PAYE) new tax brackets. He said the road network shall also be improved as the road agency shall have focus on it. Also, University of Eswatini (UNESWA) Economics Lecturer Sanele Sibiya, said the proposed fuel levy, which would increase petroleum products by 30 cents, would in turn corrode the E500 which was said to be going into the pockets of low income earners. Sibiya said the proposed fuel levy would be transferred to the price of commodities which was a view also supported by Thembinkosi Dube, who said the buying power that was being proposed would be used in the procurement of basic goods and services..

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