Commercial Bank of Ethiopia and the Ethiopian Road Fund have signed an agreement to collect annual vehicle license renewal fee. On Thursday 4th of March 2021, Kidane Mengesha, deputy president of Central Region and Rashid Mohamed, director of Road Fund Office have signed the agreement on behalf of their respective office.
The agreement is expected to benefit 1.2 million car owners in Ethiopia according to Kidane, “Customers will be able to pay their payment through bank branches, POS machines and online banking services without any hassle.”
As Kidane said, since 53 percent of the overall Commercial Bank of Ethiopia services is through digital system, this step could also help as part of its effort to a cash less transfer and modern society.
According to Rashid, more than 3 billion birr will be collected annually; making the payment service through the commercial bank beneficial to the customers and the office. Money is often lost through eliminating fraud and using fake documents that should have been deposited in to the road fund, since the transaction is now wireless it shall increase the office collection capacity, according to him.
Customers will pay their bills at the bank and submit their receipt and vehicle libbers to the post office after receiving the confirmation to their payment.
The bank has previously collaborated with Addis Ababa water and sewerage, Ethiopian Airlines, Ethiopian Electric Service, Ethio Telecom and other public and private organizations.
Road Fund Agency has collected 1.46 billion birr in the first half of the current fiscal year 2020/21.
According to the agency, from its five sources the agency has collected 98 percent of its plan which was 1.5 billion birr.
Road Fund Agency works on road condition surveys and road maintenance by collecting its budget from oil tariff tallying to about 1.39 billion birr and 2.1 million birr from vehicle oil and grease. Moreover it gains revenue from: Road Value Purchase 1.526 million birr, the Treasury 8.978 million birr, Document Weight-based vehicle license renewal 64.746 million birr and the Weight-based vehicle license renewal 51.778mllion birr.
While it was planned to carry out 12125.028 km of road maintenance in the first half of the budget year, 12007.988 km has been carried out by the office thus far. Out of the 1861 km planned repairs, 1252 km of repairs have been completed.
In the last six months, the office has paid 622,779,447 Birr for regular repairs according to the office whilst 138,484,750 birr was spent on monitoring and support. 1.05 billion Birr was further paid by the office for Prepaid and Certificate of Payment for the Road Agencies Basis.
The post CBE, ERF strike a deal for fee collection appeared first on .
Source: Link to the Post