ECONOMYNEXT – Sri Lanka will build a Road Maintenance Fund by taxing fuel and charging a feel on the annual license fees of vehicles to maintain the country’s roads, an official said.
Vehicle license fees now form part of provincial revenues.
“To ensure proper road maintenance and to reduce the high expenditures incurred by the government for road building and maintenance, the motorists should also shoulder the cost, as is the case in other nations,” Ministry of Transport and Highways, Media Secretary, Mahesh Vikrama said.
“The fee is in the form of a tax, for which we will set aside a specific sum for the fund and include it in the tax. To accomplish that, we must submit an act to the parliament.”
In March the cabinet of ministers approved the setting up of a road maintenance fund.
Charging taxes directly from users, reduces burden on the general taxes.
In a budget for 2023, 100 million rupees of seed money was allocated for the proposed road fund.
allocated a sum of 100 million in the 2023 budget to construct all main and inter-provincial roads.
In 2022, 375 billion rupees has been set out in the budget for the constructing and maintaining rural and interprovincial highways.
According to the Minister for Transport and Highways, Bandula Gunawardana, Sri Lanka would be able to maintain a stronger road network by using money from the RMF and be less of a burden on the general tax revenues. (Colombo/April178/2023)