FERMA lobbies PPPRA over 5% fuel tax to maintain roads (http://www.businessdayonline.com/index.php?option=com_content&view=article&id=8993:ferma-lobbies-pppra-over-5-fuel-tax-to-maintain-roads-&catid=85:national&Itemid=340)
...PPPRA chairman says no going back on deregulationIn order to get adequate funds to maintain federal roads, Abdulkadir Kure, chairman, Federal Roads Maintenance Agency (FERMA), is currently lobbying for the inclusion and full implementation of a 5 percent users' charge on the pump price of petrol and diesel. Bemoaning the sorry state of Federal Government roads and the "lean budgetary provisions" granted for their upkeep, Kure on Wednesday told the management of the Petroleum Products Pricing Regulatory Agency (PPPRA) in Abuja that the immediate implementation of the 5 percent users' charge would be a solution to the deplorable condition of the nation's roads. Meanwhile, Ahmadu Ali, chairman of PPPRA notes that though the request of the FERMA team was justifiable, a lot more needed to be done to make it a reality, adding that it would have been a lot more feasible if only the sector were deregulated. Notably, the PPPRA template currently has no provision for road maintenance tax which forecloses the realisation of the road users' charge. It would be recalled that the introduction of a fuel tax in 2003 to replace the funds sourced from the dismantled toll gates was opposed and defeated by the labour unions.Kure said, "It is our prayer that closer collaboration between PPPRA and FERMA will contribute towards the realisation of the 5 percent users' charge which will ultimately result in better road infrastructure in fulfillment of the seven-point agenda on roads. "Five percent users' charge on pump price of petrol, diesel and of which 40 percent will accrue to FERMA and 60 percent to be utilised by the established state roads maintenance agencies," he adds.According to data from the PPPRA based on the annual consumption of PMS, diesel and refined fuel oil, at least N62.415 billion is projected to be realised yearly out of which 40 percent will accrue to FERMA.
Source: Businessday :: News you can trust (http://www.businessdayonline.com/index.php?option=com_content&view=frontpage)