Maravi

ZACA urges govt to improve revenue collection at RTSA

ZACA urges govt to improve revenue collection at RTSA
By Joan Chirwa
Wednesday March 19, 2008 [03:00]

GOVERNMENT should first improve revenue collection efficiency at the Road Transport and Safety Agency (RTSA) instead of implementing new road user fees, Zambia Consumer Association (ZACA) chief executive Muyunda Ililonga has said. Appearing before a parliamentary committee on Communication, Works and Supply on Monday, Illilonga said RTSA was currently failing to collect revenue from motorists because of its low efficiency levels.

“The view held by many motorists is that RTSA is inefficient and is failing to collect existing government revenue as many motorists queue for many days to fulfill their tax obligations. The motorists are let down by the government agency that is failing to provide them service in good time and as a consequence, the money that is supposed to go to government is held back by the motorists,” Illilonga said. “So one of the ways that government can mobilise the revenue so desperately needed to develop and maintain our road infrastructure is by improving the collection efficiency by RTSA instead of increasing fees.”

Illilonga said the proposed increase to road user fees would also stimulate corrupt practices among government officials and citizens.

“Experience has shown that whenever the state imposes high taxes on the citizens, the temptation to avoid paying such taxes by conniving with the enforcement agencies becomes prevalent. This in real terms means loss of revenue to government and an increase in corruption cases,” Illilonga said. “As a consumer body, we also fear that an increase in the road user fees will translate into an increase in bus fares because business entities will simply pass on the fees onto the consumers.”

Illilonga said the proposed road user fees should not be implemented as the government is expected to raise additional revenue from increased mine taxes, the resources that could also be used for road construction and maintenance.

“The Zambian consumer is already heavily burdened with several other taxes and the proposed increase in licence fees will add injury to the already miserable consumer,” said Ililonga.

RTSA recently proposed a 400 per cent increase in road user fees, but it was later announced that the proposal was prematurely announced. The proposed fees have since been revised and are expected to come into law early next month.

Labels: PARLIAMENT, RTSA, ZACA

posted by MrK @ 4:17 PM