The government of North Kivu province in the Democratic Republic of the Congo has announced a one-month suspension of conventional taxes on oil products. This decision, made public on October 9, aims to resolve a crisis that has led to a shortage of fuel in Beni, where the price of a liter has risen to 10,000 Congolese francs. The suspension was announced by the province's military governor, General Évariste Somo Kakule.
The crisis began with a dispute between the Federation of Congolese Enterprises (FEC) and the Congolese Accredited Customs Clearers Agency (ACCAD) over the interpretation of texts governing the collection of conventional taxes on imported oil products. The disagreement led to a strike in the oil sector and the blocking of several fuel shipments at the Kasindi-Lubirigha border. As a result, several service stations in Beni closed, and there were disruptions to transportation and economic activities.
The price of fuel in Beni has increased significantly, from around 3,800 Congolese francs per liter to 10,000 francs. The provincial government hopes that the suspension of taxes will help to increase the supply of fuel and reduce prices. The government has also ordered an audit of all development projects financed by revenue from conventional taxes and another audit on the collection of taxes for reconstruction.
The suspension of taxes is intended to allow for an examination of the causes of the controversy and the establishment of responsibilities. The provincial authority has also convened an emergency meeting to discuss the issue and consider new measures, including a possible reduction in fuel prices. The dispute between the FEC and ACCAD dates back to October 2.
According to Radio Okapi, the effects of the tax suspension on the oil market are yet to be seen. The provincial government is counting on the measure to help stabilize the supply of fuel and reduce prices. The crisis has had a significant impact on the local economy, with many businesses and households affected by the shortage of fuel.
The situation in Beni remains uncertain, with many residents waiting to see if the suspension of taxes will lead to a reduction in fuel prices. The provincial government has urged calm and promised to work towards finding a lasting solution to the crisis. The audits ordered by the government are expected to shed more light on the causes of the controversy and help to prevent similar crises in the future.
The tax suspension is a temporary measure aimed at addressing the immediate needs of the population. The provincial government will need to work with all stakeholders to find a more permanent solution to the crisis and ensure that the supply of fuel is stabilized. The situation will continue to be monitored, and further updates are expected.
Key points
- The North Kivu provincial government has suspended taxes on oil products for a month to address a crisis affecting fuel supply in the region.
- The crisis began with a dispute between the FEC and ACCAD over the interpretation of texts governing the collection of conventional taxes on imported oil products.
- The suspension of taxes is intended to allow for an examination of the causes of the controversy and the establishment of responsibilities.
