The government is planning to cancel a fuel levy advanced to state owned National Petroleum Corporation of Namibia (Namcor), The Brief can reveal.
This comes as Mines and Energy minister Tom Alweendo said the government was in the process of weaning off Namcor.
“Discussions are ongoing to discontinue the fuel levy of Namcor, because there is no way we can continue supporting a commercial company that generates income. So, the modalities are being worked out,” he said.
He added the ministry is also busy reviewing various levies.
Namcor used to receive 7.6 cents for every litre of fuel sold in the country, but the figure was later slashed to 3.8 cents under the government’s fuel price relief measures aimed at containing a spike in fuel prices which are currently hovering at N$22/lire.
The measures also resulted in the Road Fund Administration’s Road User Charge being cut from 148 cents to 74 cents, while the MVA Fund levy was cut to 37.725 cents from 47.7 cents.
“The other levies are very crucial and cannot be scrapped because these companies do not sell any services, thus it becomes difficult for them to be sustainable. If we get rid of the levies, then it means motorists will have to contribute towards such services, like RFA’s maintenance of national roads and MVA’s accident claims and medical payments to victims,” Alweendo said.
“If that doesn’t work, a budget allocation will need to be availed but considering the struggling economy that might be a challenge.”
Alweendo made these remarks at the ministry’s stakeholders’ engagement to explore opportunities in the mines and energy sector.
Meanwhile Namcor spokesperson Paulo said the entity is also considering breaking away from a dependency on the line ministry.
“Considering the oil discovery, we, as well as the down and upstream business, anticipate to fully commercialise and that will make us self-sustainable and subsequently become a major contributor into the national economy,” he added.
