Bunge’s energy committee proposes for tax removal on vehicle conversion equipment

DAR ES SALAAM: THE Parliamentary Committee on Energy and Minerals has advised the government to scrap taxes on equipment used to convert vehicle systems from oil to natural gas.

The recommendation aims at stimulating economic growth and enhance the quality of life for citizens by promoting the adoption of natural gas as an alternative fuel source.

The Committee Chairman Dr David Mathayo proposed on Saturday during a visit to two natural gas filling stations located at Airport and Ubungo in Dar es Salaam.

He highlighted the financial barrier posed by the current taxation on gas conversion equipment, estimating the cost to be between 1.8mil/- to 2mil/- per vehicle.

“If the tax on these devices is removed, it will enable many people to install the gas system in their vehicles,” remarked Dr Mathayo.

He further urged the government to incentives car importers to bring in gas-powered vehicles and consider importing cars already equipped with natural gas systems to reduce reliance on traditional fuel sources.

Dr Mathayo emphasised the potential cost-saving benefits for both individuals and the government, noting that the use of natural gas in vehicles can significantly reduce fuel expenses, particularly for government vehicles.

He commended the sixthphase government for its efforts to promote the adoption of natural gas in the transportation sector.

In collaboration with the government, Dr Mathayo urged the Tanzania Development Corporation (TPDC) to facilitate the construction of more natural gas filling stations to meet the growing demand.

Additionally, he insisted on the importance of establish – ing more garages equipped to handle the conversion of vehicle systems from oil to natural gas.

Highlighting the broader benefits of transitioning to natural gas, Dr Mathayo said the process has positive impacts to the country’s economy as well as environmental preservation.

He explained that reducing dependence on imported oil would save foreign currency and create opportunities for self-employment, particularly among youth engaged in transportation services such as Uber and Bolt.

Deputy Minister of Energy, Judith Kapinga, echoed the committee’s sentiments, stating that approximately 15 new filling stations are expected to be built this year.

She assured that the government, in collaboration with private companies, is committed to reducing the costs associated with converting vehicle systems to natural gas.

Mussa Makame, Managing Director of TPDC, revealed plans to purchase five mobile stations to expand access to natural gas.

The ongoing construction of new stations underscores the commitment to promote the use of natural gas as a viable alternative fuel source in Tanzania.

As Tanzania moves towards a greener and more sustainable transportation sector, the parliamentary committee’s recommendation reflects a proactive approach to harnessing the economic and environmental benefits of natural gas.

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