President Samia directs waiver of Sh102 billion off levies and fees charged on fuel

Dar es Salaam. Fuel prices could remain stable in Tanzania, following a government directive to reduce a total of Sh102 billion on levies, fees and charges on petroleum products.

Government last month formed a team which comprised of experts from Ewura, Tanzania Revenue Authority (TRA) and the Ministry of Energy among others and tasked it with the responsibility of reviewing the levies, taxes, fees and charges.

Working on the recommendations by the team, President Hassan on Tuesday, October 5 directed that levies, fees and charges should drop by Sh102 billion per year.

The director of Presidential communications at the State House, Mr Jaffar Haniu, said in a statement that President Samia Suluhu Hassan issued the directive when she received the team's report from the Minister for Energy, Mr January Makamba.

“Implementation of the President’s directives will go hand in hand with a review of various regulations governing the levies, fees and charges which will be published in the Government Notice on October 5, 2021,” the statement reads.

According to the statement, the directive to reduce the levies, fees and charges will affect Ewura, Tanzania Ports Authority (TPA), TRA, TBS, WMA and Local Government Authorities for Kigamboni, Temeke, Tanga and Mtwara who were direct beneficiaries.

The President also directed her lieutenants to quickly go through all the laws governing fuel and move a motion for amendments in Parliament.

“The aim is to protect a Tanzanian consumer against costs that stem from rising fuel prices,” the statement reads.

Apart from Mr Makamba, presentation of the report was also attended by Finance and Planning Minister Mwigulu Nchemba, Industry and Trade minister Prof Kitila Mkumbo, Minister of State in the President’s Office (Regional Administration and Local Government Authorities) Ummy Mwalimu as well as Works and Transport Minister Prof Makame.

Also in attendance were: Energy Deputy Minister Stephen Byabato, Attorney General Eliezer Feleshi, Permanent Secretary in the Ministry of Energy Leonard Masanja and his deputy Kheri Mahimbali among others.

Apart from the global market prices and the value of the Tanzanian shilling against the US dollar, pump prices in Tanzania are also determined by other factors including taxes, levies, fees and charges which are payable to government institutions, agencies and departments.

These include: Wharfage, Railway Development Levy, Customs Processing Fee, Weights and Measures Agency (WMA) Fee, Tanzania Bureau of Standards (TBS) charges, Tanzania Shipping Agency Corporation (Tasac) charges, Energy and Water Utilities Regulatory Authority (Ewura) fee, Fuel Marking fee, demurrage costs, and surveyors’ costs.

The list also has financing costs, evaporation losses, fuel levy, excise duty, petroleum fee, charges payable to executive agencies, and service levy payable to local government authorities at both wholesale and retail levels.