Increased fuel levy groundless

In a nutshell, despite all the miles that take to ship in fuel from abroad, consumers are forced to go deep into their pockets, not as a cost of getting the product but simply paying the government through fuel as deliberate move to boost its revenue.

Having known that the burden is truly felt, the government did not raise taxes on fuel in its 2016/17 budget estimates that was tabled in Dodoma recently. This is despite all its intention to increase revenue collections.

Thus to each litre of fuel being sold at a pump price, a consumer pays over Sh1,000 on taxes and other costs embedded on fuel. For instance last February, The Guardian published an article showing retail price for a litre of petrol being sold at Sh1,842 whose CIF (Cost, Insurance & Freight) was Sh785.73 per litre.

Again CIF for a litre of diesel was Sh668.82 but retail price was Sh1,600 per litre, while kerosene attracted similar taxes. Nevertheless, on Thursday this week while contributing to the budget estimates, legislators unanimously called for the increase of Sh50 to each litre of fuel of petrol and diesel.

The reason is that the legislators made such call after most of them realized that funds allocated for water and health projects in the new budget was not sufficient to meet the demand! It is reported that each legislator who got an opportunity to contribute to the debate complained over lack of clean and safe water and health facilities in their constituencies.

We tend to caution MPs not to look for scapegoats of problems and challenges facing their constituents in a national burden pegged on a small section of consumers who are already heavily milked of their income already thronged with unbearable fall of the value of the shilling.

During campaigns trails, these same MPs were confidently exhibiting their prowess on how they would raise income to help address issues facing their constituencies at individual level as well as other means from within their councils. We would advise each district or respective local government council, under which an MP is a member, to seek sources of ending those problems.

We find quite unfounded argument for a health sector which has been allocated with Sh1.99trn, representing 9.2 per cent of the total budget to be termed as minor to the extent of billing motorists upon already over billed services. Again, 4.8 percent that amounts to Sh1.02trn of the total budget allocated for water could be a very significant relief to the sector.

With such government efforts, we expect legislators, within their constituencies to be able to craft new sources of revenue that could supplement the said merger budget. It should be known that these challenges vary from one constituency to another and likewise efforts should be made in response to the particular need of the people.

As of now, to each litre of petrol and diesel, a consumer is taxed Sh313 as fuel levy, Sh339 as excise duty, Sh100 petroleum fee, Sh71.65 as demurrage costs, regulatory levy, petroleum marking cost, customs processing fee, and weight and measure fees respectively.

This excludes Sh18 per litre as added charges local authorities and executive agencies and Sh110 per litre for local oil marketing companies.

We appeal to the government as we understand that the same consumers who pay these charges are the very ones who have to ensure they pay taxes to raise the Sh1.99trn and Sh1.02trn for health and water respectively. But instead of finding it easy to burden motorists, more tightening measures should be imposed on the income of legislators.