The Railways Workers Union of Zambia – RWUZ says it is unfair for the railway sector to continue paying fuel levy which do not even go into the rehabilitation of the rail line and a steep employee representatives, they are calling for the sector to be exempted from paying this levy so that benefits can be passed on to passengers.
Speaking in an exclusive interview with the Zambian Business Times – ZBT, RWUZ Secretary General Simon Ngambi said the railway sector purchases fuel in large quantities and yet they are subjected to pay fuel levy which has no benefit on the sector.
According to the Energy Regulatory Board – ERB, the Fuel Levy is paid by every consumer of Petrol and Diesel. ERB Public Relations Manager Namukolo Kasumpa said the current fuel levy is K1.01 per litre for Petrol and K0.32 per litre for Diesel which is used by the Government for road construction and maintenance.
But RWUZ Secretary General Simon Ngambi has argued that it does not make sense for the railway sector to continue paying for the particular component when they do not use the road and government does not use the funds to improve the track. Rail is a much cheaper mode of transport than road but lack of investment and upgrade continue to hinder the sector from taking its rightful place.
Ngambi said Government should come in and see how best it can help the rail sector stating that the fuel which they buy does not go towards the maintenance of the rail but to the maintenance of the road.
“We are asking Government to exempt the railway sector from paying the (fuel levy) that particular component so that the company can mitigate some of the challenges the company is facing.” He said.
Ngambi said, “This is our concern because the fuel we buy and the fuel levy we pay does not go to rehabilitate the rail line but the component goes to the rehabilitation of the road.”
He said Zambia railways contribute to the maintenance of the road through fuel levy which they do not even use.
