Road toll now flat rate for all vehicles

Trucks await customs clearance at the Rusumo border. Attempts to harmonize tariffs across East Africa by among other things, lowering road tolls, are expected to increase the volume of inter-regional trading between EAC partner states. PHOTO | FILE 

By The Citizen Reporter 

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.