STARTING on Monday, MPs here are expected to put Finance Minister, Ms Saada Mkuya Salum, on the carpet as they start discussing budget estimates for 2015/2016, which among others has increased taxes on petroleum products.

STARTING on Monday, MPs here are expected to put Finance Minister, Ms Saada Mkuya Salum, on the carpet as they start discussing budget estimates for 2015/2016, which among others has increased taxes on petroleum products.

With the majority of rural population using kerosene for lighting and cooking, it is apparent that the lawmakers will put the minister to task on the decision to increase fuel levy, particularly kerosene, from 50/- to 150/- per litre.

Shortly after the financial plan was presented last Thursday, a number of parliamentarians expressed concern on the move by the state to raise levy on fuel, cautioning that such move will push up transportation costs and eventually lead to increased prices of goods and services.

Presenting the budget earlier, Ms Mkuya said the selected super increase on kerosene was meant to check fuel adulteration. This is due to the fact that some dishonest oil traders have been taking advantage of tax difference between petrol and diesel on one hand and kerosene on the other to reap more profits through adulteration.

Analysts argue, however, that it is unfair to punish rural folks by increasing levy instead of taking measures to deal with the few dishonest oil marketing companies.

Given the depreciation of the local shilling and gradual raise of oil prices in the world market, lawmakers are of the concern that the short ‘honeymoon’ - of declining pump prices locally - will now be reversed and consumers will have to dig deeper into their pockets for the precious liquid.

In the next financial year, the government expects to collect revenues amounting to over 22trillion/- for recurrent and development projects, up from 19trillion/- during the current year.

For the last three days after the budget estimates were tabled in the National Assembly last Thursday, the Parliament went on a recess to give ample time to Members of Parliament (MPs) to peruse the financial plan to be able to make fruitful deliberations.

The opposition is as well today expected to present its alternative budget after which MPs will discuss the 2015/2016 budget estimates for the next seven days until June 23.

Unlike in the past years, Ms Mkuya did not make any mention of increment on the so-called sin taxes, meaning that cigarettes smokers and boozers are among those who went home all smiles after the financial plan was tabled.

Apart from the 100 per cent fuel levy raise on kerosene, there was a 50 per cent hike on both petrol and diesel from 50/- to 100/- per litre.

According to Ms Mkuya, the new tax measures will enable the state to collect 139.786bn/- to be channelled for rural electrification projects through the Rural Energy Agency (REA).

On the other hand, the minister announced an increase of road fuel toll from 263/- to 313/- for both a litre of diesel and petrol, representing an increment of 50/-.

The government expects to raise additional 136.37bn/- for fund rural electrification projects. The minister noted on the other hand that during pre-budget consultations by East African Community (EAC) finance ministers, it was resolved that members of the regional block should introduce infrastructure levy of 1.5 per cent of imported goods.

Tanzania will thus starting the next fiscal year, introduce a railway development levy of 1.5 per cent to be pegged on cost, insurance and freight (CIF) of imported goods to be used to improve the railway networks.

Other member states of the EAC have already introduced the levy to improve road and railway networks in the respective countries.