Tanzania’s Finance minister William Mgimwa
In Summary
For a brief period during the tensions, Rwandan
trucks were charged $500 by Tanzania Revenue Authority (TRA) while
Tanzanian-registered trucks paid $152 to enter Rwanda.
Dar es Salaam.The road toll has been harmonised to a $152 (Sh243,200) flat rate for all vehicles crossing Tanzania’s border.
The new charge applies regardless of axle load,
destination or country of registration. The move is aimed at easing the
administrative burden and ending unnecessary stress, according to the
Permanent Secretary in the ministry of Finance, Mr Servacius Likwelile.
Small vehicles below the “axles 3 load” category used to pay $6 per 100km.
The new move is the result of a meeting between
Tanzania’s Finance minister William Mgimwa and his Rwandan counterpart,
Claver Gatete. It was prompted by Rwanda’s decision to raise the road
fee for Tanzanian-registered cargo trucks passing through Rusumo border
post from $152 to $500. This hit Tanzanian trucks hard.
The two ministers met in Kampala, Uganda, on
Wednesday to resolve the issue and reports have it that both countries
agreed to harmonise the transit charges.
Dr Likwelile also allayed fears that Tanzania
would lose revenue due to the drop in road fees. “Many small vehicles
used to pay a small amount,” he said in a text message from Kampala,
where he is also attending the meeting. “They will now pay the same
amount as cargo trucks and this will automatically balance the revenue.”
Yesterday, Dr Mgimwa was quoted by this paper as
saying that his ministry lowered the charges to avoid losses arising
from the incident since Rwanda has fewer vehicles entering Tanzania than
the other way round. It is estimated that between 200 and 300 Tanzanian
trucks cross into Rwanda while only 20 and 30 Rwandan trucks cross
over.
The Tanzania Truck Owners Association (Tatoa)
said, though, that the charges had yet to drop. Tatoa spokesperson Elias
Lukumali said: “As we speak, I have been told that there are between
250 and 300 trucks stuck at the border for failure to clear their cargo
on the raised road toll of Sh800,000.”
Tatoa was waiting for an explanation from Mr Mgimwa on lowering of the charges, he added.
Besides the road toll, truck and cargo owners have
complained that they have to negotiate too many roadblocks. Industry
and Trade minister Abdallah Kigoda suggested yesterday that the two
sides find a permanent solution to such conflicts, including applying
international standards.
He added: “I am not interfering with the talks but
we can learn from others. Revenue authorities from both Tanzania and
Rwanda could borrow charging systems from other countries. “In fact,
such charges make it more expensive to transfer cargo within Africa than
doing so to destinations outside Africa.”
For a brief period during the tensions, Rwandan
trucks were charged $500 by Tanzania Revenue Authority (TRA) while
Tanzanian-registered trucks paid $152 to enter Rwanda. The distance
between Rusumo and Kigali is estimated to be 140 kilometres while that
of Rusumo–Dar es Salaam is about 1,200 kilometres.
Rwanda soon cried foul, however, and the country’s revenue
authority announced plans to raise its charges to $500 to match
Tanzania’s and gave notice that the charge would come into effect in a
week. In response, Dr Mgimwa announced that Tanzania’s road toll had
dropped to $152 per truck--just in time to beat Rwanda’s deadline.
Tanzania has been charging $6 per 100km for trucks with two to three
axles. Those with four and above axle load paid $16 per 100km covered.
With the new development, all vehicles will pay the same amount.
The central corridor about 1,700 kilometres,
stretching from Bujumbura through Kigali to the coastline at Dar es
Salaam Port, is shorter than the northern corridor--which is about 1,900
kilometres and stretches from Bujumbura through Kigali, Kampala and
Nairobi to the port of Mombasa.
SOURCE: THE CITIZEN
SOURCE: THE CITIZEN
