FINANCE minister Samuel Mumbengegwi yesterday increased the National Oil Company of Zimbabwe (Noczim’s) debt redemption levy from $60 per litre to $
2 500 to liquidate the fuel procurement company’s debt obligations.
Presenting the 2007 mid-term fiscal policy and supplementary budget yesterday, Mumbengegwi said the current levy was not conducive to liquidate the company’s debt obligations.
“The current Noczim debt redemption levy is limiting Noczim’s capacity to liquidate its debt obligations,” said Mumbengegwi.
“I therefore propose to increase the Noczim debt redemption levy from $60 to $2 500 per litre of petrol and diesel with effect from September 10, 2007,” added Mumbengegwi.
Mumbengegwi also levied specific duty of $5 000 per litre of diesel or petrol or 5% of the cost insurance freight value, whichever is greater with effect from the same date.
Analysts yesterday said the decision by government to increase Noczim redemption levy was a desperate attempt to lift the debt on its back as it is the only source of money for Noczim. Over the past four year, only a handful of companies have been forth coming to give Noczim money.
Zimbabwe has been facing fuel shortages for the past six years, a situation that has affected all sectors of the economy. The country requires at least US$40 million a month to meet its fuel needs.