01 Sep 2021

Minister of Finance and Economic Development, Ms Peggy Serame, has told Parliament that the Fuel Levy Fund collected P2.302 billion between October 2004 and March 31, 2020.

Minister Serame said the funds formed part of the appropriation during yearly budget allocations, hence not being directly linked to any specific item of expenditure because they were appropriated in the same way as other government revenues.

She explained that the fuel levy was not on the list of special funds and did not exist through any statutory instrument.

Minister Serame explained that the ministry created a revenue vote under the recurrent budget for collection of a fuel levy in October 2004, through Statutory Instrument No. 113 of 2004, Control of Goods, Prices and Other Charges (Petroleum Prices) (Amendment) Regulations. “This is in lieu of VAT, reflecting the fact that fuels were zero-rated.

As a result, revenue collected from the fuel levy, like VAT, is credited to the Consolidated Fund,” she said.

Ms Serame was responding to questions asked by Sefhare-Ramokgonami MP, Dr Kesitegile Gobotswang, who had asked the minister to state the total revenue collected from Fuel Levy Fund since its inception.

Dr Gobotswang also wanted to know how the fund had been utilised and whether the expenditure had been consistent with Statutory Instrument that established the fund. ENDS