Mass Distance Charges (MDC)

Why Mass Distance Charges?
Mass Distance Charges (MDC's), payable by heavy vehicles, will be implemented as from 1 April 2006 as an additional road user charge. The Road fund Administration (RFA) in terms of its own act (the Road Fund Administration Act 1999, Act No. 18) is obliged to secure sufficient funds to achieve a safe and economically efficient road sector

Heavy vehicles registered in Namibia are currently contributing to the Road Fund through vehicle registration fees, annual license fees and fuel levies; while foreign registered heavy vehicles contribute to the Road Fund through cross border charges and fuel levies.

A fuel levy on its own does not sufficiently recovers the costs of marginal surface consumption incurred by heavy vehicles. The reason being that road consumption increases more sharply with increases in vehicle weight than does fuel consumption.

MDC's are aimed at recovering these excess variable costs responsibility for heavy vehicles that cannot be recovered using fuel levies only, thus ensuring that owners of heavy vehicles will from now on pay their equitable share for the use of the road network.

Principle of Mass Distance Charges
MDC's on locally registered heavy vehicles will vary according to the tare of a vehicle and the distance traveled. As the exact measurement and controll of these factors are currently not technically feasible, certain assumptions regarding these will have to be regulated.

Calculations of MDC's are done strictly according to accepted transport - economic principles.

Collection of Mass Distance Charges
MDC's imposed on locally registered heavy vehicles are collected in the same way as the Vehicle Registration and Licensing fees, through the Namibian Traffic Information System (NATIS) and its contracted registered authorities, being the local authorities or municipalities.

MDC's imposed on foreign registered heavy vehicles will be added to the current cross border charges for each vehicle category and collected by Iroko Investments (RFA's collecting agent for cross border charges) at the Namibian border posts.

Rates of Motor Vehicle Licence Fees and travelling Distance Charges

Contact Details
Mass Distance Charges
Road Fund Administration
Private Bag 13372
Windhoek

Tel: +264 61 378 950
Fax: +264 61 378 978

Email: info@rafnam.com.na

________________________________________________________________________________

Click on documents below that you wish to download: