The Road Administration Fund of Namibia has increased the road users charges by 7 percent as from Monday.
Announcing the increase Tuesday in Windhoek, the Fund’s chief executive officer Ali Ipinge said the demand for maintaining roads necessitated the move.
The new tariffs will have an effect on the annual motor vehicle license and vehicle registration fees; mass distance charges or traveling distance charges; abnormal load fees as well as cross border charges or entry fees.
A program management, policy and advice executive with the Road Fund Administration, Rianus !Gonteb said Namibia’s vehicle population has created a deficit of about 170 million Namibian dollars (12.7 million U.S. dollars) per year in road maintenance.
!Gonteb also said currently, Namibia is experiencing low vehicle sales and this has affected income from car registration.
Ipinge said they want to narrow the gap between road infrastructure capital expenditure and the revenue collection.
According to Ipinge, 80 percent of what the Road Administration Fund collects is channeled to the Roads Authority that is charged with maintaining the road network as well the construction of new roads.
The money is also given to the traffic police, regional councils and the National Road Safety Council that carries out road safety programs. Enditem