Fuel Levies

In terms of the Road Fund Administration (RFA) Act, (Act 18 of 1999), a fuel levy is a fee charged on every litre of petrol and diesel sold by any undertaking at any point in Namibia and which is to be included in any determination of the selling price of petrol or diesel, as the case may be, under any law relating to petroleum products.

Currently fuel levies accruing to the RFA are set at N$1.14 per litre of petrol or diesel and forms the major contributor to the Road Fund. Fuel levies are collected on behalf of the RFA by the following entities and paid directly into the Road Fund:

  •          Vivo Energy
  •           Puma
  •           Total
  •           Engen

The Fuel Levy Refunding System

The RFA implemented the Fuel Levy Refunding System (not being a rebate system), on 1 April 2001. Through this system users of fuel in each qualifying sector may be refunded a certain percentage of the fuel levy component, which forms part of the RFA's Road User Charge System.

The Fuel Levy Refunding System has been implemented to promote efficiency and equity in the use of resources by refunding off-road users qualifying for refunds.

Qualifying Sectors

The following sectors and sub-sectors qualify for refunds:

  • Agriculture

v  Livestock production

v  Agronomic production

  • Construction

v  Building

v  Civil

  • Marine Fishing
  • Mining
  • Railroad Transport (TransNamib)

Fuel Types Considered

The vast bulk off-road usage pertains to diesel.

Although petrol is used to a limited extent for off-road purposes, claims for refunds of the fuel-levy on petrol would be considered if they are accompanied by fact-supporting submissions of a group of users in a sector.

Basis for Refunding

The off-road usage level for each Qualifying Sector is based on historical claims patterns and information obtained from the various sectors.

Only claims from end-users of fuel would be considered, and not claims submitted by bulk distributors or fuel agents.

Before a refunding claim could be processed, the RFA should have clear proof from the claimant that the fuel levy payments have been deposited into the Road Fund Account by a wholesaler to whom a wholesale licence has been issued under the Petroleum Products and Energy Act (Act 13 of 1990).

Registration Procedures

Off-road fuel users within the sectors that qualify and that wish to claim refunds should first register with the RFA by completing Forms RF/R5. This procedure applies to existing as well as new users.

Only fuel users as specified under Qualifying Sectors will be considered for registration.

Users in the Agricultural sector should indicate what percentage of fuel is being used for Livestock and Agronomic production, respectively, as different refund percentages apply to each sub-sector.

Similarly, users in the construction sector have to specify a percentage of fuel used in the Civil and Building sub-sectors, respectively.

If an application has been successful, a user registration number will be assigned to the applicant.

A letter will be sent to the applicant informing the person/entity of the outcome.

Registered users should indicate if their status has changed and if so re-register by completing and submitting a new application form.

Claims Submission

Only claims from registered users will be considered. Claims must be submitted on Form RFA/R3 and the original purchase invoice(s) made out in the name of the claimant should be attached to the claim form.

Only original invoices from wholesalers registered in terms of the Petroleum Products and Energy Act will be accepted. Invoices from other retailers will be considered on merit.

 

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