The Land Transport Regulatory Authority (Tariff) Regulations, 2020
This section is titled “Interpretation” and sits in the preliminary provisions.
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About this statute
This section is titled “Interpretation” and sits in the preliminary provisions. This section says certain services are subject to tariff regulation and are handled under a competitive-bidding approval process. This section is about approving a tariff through competitive bidding. Section 7 is titled “Limitations” and appears in Part IV on application and review of tariff. Section 10 concerns submissions of tariff review by consumers.
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Provisions of The Land Transport Regulatory Authority (Tariff) Regulations, 2020
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Interpretation
AI-assisted research summary: This section is titled “Interpretation” and sits in the preliminary provisions.
3. Interpretation. PART I PRELIMINARY PROVISIONS PART II REGULATED SERVICES
Part
PART II
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Services subjected to Tariff Regulation
AI-assisted research summary: This section says certain services are subject to tariff regulation and are handled under a competitive-bidding approval process.
4. Services subjected to Tariff Regulation. PART III APPROVAL OF TARIFF THROUGH COMPETITIVE BIDDING - 4 Verify source ↗
(1) A service provider shall not set up or charge
AI-assisted research summary: A service provider must not set or charge a tariff that the Authority has not approved. The Authority must regulate tariffs for listed transport services, unless there is apparent effective competition among service providers.
4.-(1) A service provider shall not set up or charge tariff which is not approved by the Authority. (2) The Authority shall regulate tariffs of the following services: (a) rail passenger transport services; (b) rail freight transport services; (c) road public transport services; (d) cable transport services; (e) road freight transport services; and (f) any other services that may be declared by the Authority as regulated services. (3) Notwithstanding sub-regulations (1) and (2), where there is apparent effective competition among service 4 GN. No. 82 (contd.) Land Transport Regulatory Authority (Tariff) through Tariff competitive bidding providers, the Authority may not regulate tariffs of the regulated services. APPROVAL OF TARIFF THROUGH COMPETITIVE BIDDING PART III
Part
PART III
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Approval of tariff through competitive bidding
AI-assisted research summary: This section is about approving a tariff through competitive bidding.
6. Approval of tariff through competitive bidding. - 7 Verify source ↗
Limitations
AI-assisted research summary: Section 7 is titled “Limitations” and appears in Part IV on application and review of tariff.
7. Limitations. PART IV APPLICATION AND REVIEW OF TARIFF - 5 Verify source ↗
(1) Where a tariff for regulated service is obtained
AI-assisted research summary: If a regulated-service tariff is obtained through competitive bidding by someone other than the Authority, the Authority must treat it as the approved tariff for the contracted service.
5.-(1) Where a tariff for regulated service is obtained through competitive bidding by a party other than the Authority, the Authority shall regard such tariff as being the approved tariff for the contracted service. (2) Subject to subregulation (1), a tariff shall be considered to be obtained through a competitive bidding if- (a) a party intending to engage a service provider shall through competitive bidding submit the bidding documents to the Authority for approval prior to inviting bidders; (b) prior to awarding the tender to the successful bidder, the procuring entity submits a proposed contract for the prospective service provider to the Authority in order for the Authority to satisfy itself that regulatory requirements are adequately provided for; and (c) the proposed contract for the prospective service provider provide for- (i) need to adhere to regulatory process of reviewing tariff in accordance with these Regulations in case of tariff change during the contract period; (ii) performance criteria commensurate with proposed tariff; and which are of through Approval tariff competitive bidding (iii) need for the service provider to comply with other regulatory requirements. - 6 Verify source ↗
(1) Where the Authority finds that competitive
AI-assisted research summary: If the Authority thinks competitive bidding is the best way to get a service provider for a regulated service, it must require the relevant authority to start bidding. A successful bidder’s price is treated as the approved tariff, and prospective service providers must follow tariff-review and performance-related regulatory requirements.
6.-(1) Where the Authority finds that competitive bidding is the most efficient way of obtaining a service provider for a regulated service, the Authority shall require the relevant authority to initiate the bidding process, and a bidding price of a successful bidder shall be regarded as the approved tariff. (2) The prospective service provider shall adhere to- (a) regulatory process of reviewing tariff in case of tariff change during a contract 5 GN. No. 82 (contd.) Land Transport Regulatory Authority (Tariff) period; (b) proposed performance criteria which are commensurate with proposed tariff; and (c) any other regulatory requirements. Limitations - 7 Verify source ↗
Where tariff has been approved in accordance with
AI-assisted research summary: An approved tariff applies only to the contract it relates to.
7. Where tariff has been approved in accordance with these Regulations, such tariff shall apply to respective contract only. PART IV APPLICATION AND REVIEW OF TARIFF Application for tariff
Part
PART IV
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Submissions of tariff review by consumers
AI-assisted research summary: Section 10 concerns submissions of tariff review by consumers.
10. Submissions of tariff review by consumers. - 13 Verify source ↗
Initiation of review of tariff by Authority
AI-assisted research summary: This section is titled “Initiation of review of tariff by Authority.”
13. Initiation of review of tariff by Authority. 1 GN. No. 82 (contd.) Land Transport Regulatory Authority (Tariff) PART V DETERMINATION OF TARIFF - 8 Verify source ↗
(1) Any person who intends to provide regulated
AI-assisted research summary: A person intending to provide a regulated service must submit a tariff application to the Authority for determination and approval.
8.-(1) Any person who intends to provide regulated service shall submit a tariff application to the Authority for determination and approval. (2) A tariff application shall be made in accordance with the prescribed form set out in the First Schedule to these Regulations supported with the following documents- (a) valid operator’s license or proof of application for a licence; (b) current business bank statement; (c) business plan; (d) proposed tariff; (e) worksheet of calculations made to arrive at the proposed tariff; (f) proposed special tariff for pupils; and (g) any other supporting document that may be required by the Authority. Application for review of tariff - 9 Verify source ↗
(1) A service provider applying for review of tariff
AI-assisted research summary: A service provider seeking a tariff review must file a prescribed application with the Authority and supporting documents.
9.-(1) A service provider applying for review of tariff shall submit an application to the Authority in a prescribed form set out in the Second Schedule to these Regulations supported with the following- (a) valid operator’s licence; (b) proposed tariff; (c) reasons and justifications for tariff review including how the consumers will benefit from such review; (d) worksheet of the calculations made to arrive at the proposed tariff; the (e) audited accounts for immediate 6 GN. No. 82 (contd.) Land Transport Regulatory Authority (Tariff) preceding three consecutive years or less depending on the age of the entity; operational (f) performance report including detailed financial technical analysis for the past five years or less depending on the age of the entity; and (g) any other supporting document as may be and required by the Authority. (2) A service provider may apply for a tariff review after a period of at least three years from the last review. (3) Notwithstanding sub-regulation (2), where the return on investment is below 10% or above 25%, an application for review of road passenger fare may be made annually. (4) Notwithstanding regulations 8 and 9, a service provider may submit tariff application on behalf of other similar service providers. Submissions of tariff review by consumers - 10 Verify source ↗
(1) A registered consumer may initiate tariff
AI-assisted research summary: Registered consumers may start a tariff review by submitting materials to the Authority, and the Authority must review the submission and respond within 14 days if the review will not continue.
10.-(1) A registered consumer may initiate tariff review by making submissions to the Authority. (2) Notwithstanding sub-regulation (1), a consumer of regulated services through a registered consumer may initiate tariff review by making submissions to the Authority. (3) Submissions made under this regulation shall be accompanied with: (a) proposed tariff; (b) reasons and justifications for tariff review including how the consumers will benefit from such review; (c) worksheet of the calculations made to arrive at the proposed tariff; and (d) any other supporting document as may be required by the Authority. (4) Upon receipt of the submissions, the Authority shall examine the submissions in order to determine the need for carrying out tariff review process for. the (5) Where submissions do not provide justification for tariff review, the Authority shall within fourteen days from the date of receipt of the submission, inform the registered consumer accordingly stating reasons for non-continuation of the tariff review process. 7 GN. No. 82 (contd.) Land Transport Regulatory Authority (Tariff) Withdrawal of application - 11 Verify source ↗
Any applicant for tariff approval or review may
AI-assisted research summary: An applicant for tariff approval or review may withdraw the application before a decision is made.
11. Any applicant for tariff approval or review may withdraw his application at any time before a decision is made. Compliance - 12 Verify source ↗
A service provider shall comply with a decision
AI-assisted research summary: A service provider must comply with the Authority’s decision on the proposed tariff.
12. A service provider shall comply with a decision made by the Authority on the proposed tariff. of Initiation review of tariff by Authority - 13 Verify source ↗
(1) The Authority may on its own motion initiate
AI-assisted research summary: The Authority may start a tariff review inquiry on its own initiative and may require the service provider to provide information within a specified time.
13.- (1) The Authority may on its own motion initiate an inquiry to review a tariff of any service provider where- (a) there are changes in the circumstances that require tariff adjustment; (b) tariff charged by a service provider was not approved by the Authority; (c) the applicable assumptions used to calculate the tariff have significantly changed; or (d) the service provider has failed to submit tariff review application to the Authority within the prescribed time. (2) The Authority may when excising its power to review tariff on its own motion under subregulation (1), require to submit any necessary information within a specified time. the service provider (3) Where a service provider fails without reasonable cause to submit the requested information within the time specified the Authority shall terminate the tariff review process. PART V DETERMINATION OF TARIFF
Part
PART V
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Procedure for determination of tariff
AI-assisted research summary: This section concerns the procedure for determining a tariff.
14. Procedure for determination of tariff. - 15 Verify source ↗
Tariff determination
AI-assisted research summary: This provision is titled “Tariff determination” and appears in Part VI, “Offences and Penalties.”
15. Tariff determination. PART VI OFFENCES AND PENALTIES - 14 Verify source ↗
Subject to Section 19 of the Act and any other
AI-assisted research summary: The Authority must review and determine a tariff application within 90 days, notify the public in a newspaper, and invite written stakeholder submissions within 14 days of notice.
14. Subject to Section 19 of the Act and any other factors the Authority considers relevant, the Authority shall, within ninety days from the date of receipt of a tariff application, carry out the review and determine the tariff. (1) The Authority shall notify the public of the tariff application through widely circulating newspaper to call for stakeholders’ written submissions within fourteen days from the date of publication of notice. (2)Where the Authority is satisfied that all relevant information has been provided, it shall- (a) approve or vary the tariff application and attach conditions thereof; or (b) reject the tariff application and give reasons for 8 for Procedure determination of Tariff GN. No. 82 (contd.) Land Transport Regulatory Authority (Tariff) its decision. Tariff determination - 15 Verify source ↗
The Authority shall determine tariff for regulated
AI-assisted research summary: The Authority must determine tariffs for regulated services using the listed factors.
15. The Authority shall determine tariff for regulated services based on the following: (a) costs of efficiently making, producing and supplying the goods or services; (b) desire to promote competitive rates and attract the market; (c) any relevant benchmarks including international benchmarks for prices, costs and return on assets in comparable industries (d) financial implications of the determination; (e) consumer and investors interest; (f) fair return on assets in the regulated sector; (g) need to induce efficiency on consumption of regulated services; (h) need to attain price stability; and (i) any other factors the Authority considers relevant. PART VI OFFENCES AND PENALTIES Offences
Part
PART VI
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General penalty
AI-assisted research summary: This section is titled “General penalty.”
17. General penalty. PART VII GENERAL PROVISIONS - 16 Verify source ↗
(1) Any person who
AI-assisted research summary: Any person who does certain tariff, ticket, record, or compliance-related acts commits an offence and may be fined, imprisoned, or both.
16.-(1) Any person who- (a) fails to issue a ticket or receipt for services rendered; (b) applies non-approved tariff; (c) fails to display approved tariff in a manner prescribed under these Regulations; (d) fails to submit tariff book or rate table to the Authority ; (e) furnishes to documents, information, statements, which are false or incorrect; or the Authority (f) hinders or obstructs an officer of the Authority or an inspector in the performance of his duty under these regulations; commits an offence and shall be liable to a fine of not less than one million shillings and not exceeding three million shillings or imprisonment for a term not exceeding two years or to both, Provided that, where an offence is committed by a body corporate, it shall be liable to a fine not exceeding five million shillings. (2) Any person who without lawful excuse refuses or fails 9 GN. No. 82 (contd.) Land Transport Regulatory Authority (Tariff) Authority’s to submit to comply with information, commits an offence and on conviction, shall be liable to a fine of not exceeding three hundred thousand shillings or to imprisonment for a term not exceeding fifteen months or both, requirement Provided that, where the offence is committed by a body corporate it shall be liable to a fine not exceeding five hundred thousand shillings. General penalty - 17 Verify source ↗
Any person who breaches any provisions of these
AI-assisted research summary: If a person breaches these Regulations and no specific penalty is set, they are liable to a fine.
17. Any person who breaches any provisions of these Regulations for which no specific penalty is prescribed shall be liable to a fine not exceeding five hundred thousand shillings or prescribed fine in the applicable sector, legislation whichever is greater. PART VII GENERAL PROVISIONS Information about tariff
Part
PART VII
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Issuance of receipt for service rendered
AI-assisted research summary: This section concerns issuing a receipt for a service rendered.
22. Issuance of receipt for service rendered. - 27 Verify source ↗
Revocation
AI-assisted research summary: This section is titled “Revocation.”
27. Revocation. 2 GN. No. 82 (contd.) Land Transport Regulatory Authority (Tariff) LAND TRANSPORT REGULATORY AUTHORITY ACT (CAP. 413) ________ REGULATIONS _______ (Made under section 45) ________ THE LAND TRANSPORT REGULATORY AUTHORITY (TARIFF) REGULATIONS, 2020 PART I PRELIMINARY PROVISIONS Citation - 18 Verify source ↗
A service provider shall provide accurate and
AI-assisted research summary: A service provider must give consumers accurate and adequate information about the approved tariff.
18. A service provider shall provide accurate and adequate information of the approved tariff to consumers. Publication of approved tariff tariff, - 19 Verify source ↗
The service provider shall, before effecting the
AI-assisted research summary: The service provider must give public notice of an approved tariff before implementing a new approved tariff.
19. The service provider shall, before effecting the approved the implementation of new approved tariff to the public in any widely circulating newspaper or radio or television with wide coverage. issue a fourteen days’ notice on Display of approved tariff - 20 Verify source ↗
A service provider shall display the approved tariff
AI-assisted research summary: A service provider must display the approved tariff.
20.A service provider shall display the approved tariff on the following areas- (a) at the point of sale; (b) at customer service centre; (c) relevant transport carrying unit; and (d) on service provider’s notice board or website where available. book Tariff and rate tables - 21 Verify source ↗
(1) A service provider shall prepare or review a
AI-assisted research summary: A service provider must prepare or review a tariff book or rate table to include the approved tariff, and submit it to the Authority.
21.-(1) A service provider shall prepare or review a tariff book or a rate table, as the case may be, to incorporate the approved tariff and submit a copy to the Authority. (2) The service provider shall submit a prepared or reviewed tariff book or a rate table, as the case may be, to the Authority within one month from the date of issuance of the approved tariff by the Authority. Issuance receipt of for - 22 Verify source ↗
(1) A service provider shall issue a receipt to a
AI-assisted research summary: A service provider must give a consumer a receipt for payment for services rendered.
22.-(1) A service provider shall issue a receipt to a 10 GN. No. 82 (contd.) service rendered Land Transport Regulatory Authority (Tariff) consumer as evidence of payment made for services rendered. (2) The receipt may be inspected by the Authority to ensure conformity with the approved tariff and conditions of carriage. Tariff discount scheme - 23 Verify source ↗
(1) Any service provider may offer a discount
AI-assisted research summary: Service providers may offer discount schemes, but they must inform the Authority first and make sure the schemes meet the listed disclosure, approval, and competition requirements.
23.-(1) Any service provider may offer a discount scheme on tariff and shall inform the Authority of any scheme available to customers prior to its application. (2) A service provider shall ensure that all discount schemes- (a) provide the terms and conditions and the details of the discount scheme; (b) provide clear information to its customers on the terms and conditions of the discount scheme through publication in widely circulating local newspapers and where applicable, in accessible electronic media, sign language or any other method acceptable by the Authority; (c) indicate and publish where the discount scheme requires the customers to pay the applicable rate; Preventive tariff Review of Authority’s decision (d) obtain the necessary approvals from relevant authorities where the discount scheme involves the services other Authority; and those regulated by than (e) are not anti-competitive. (3) The Authority may discontinue a discount scheme that does not comply with this regulation and state the reasons for doing so. - 24 Verify source ↗
A dominant service provider shall not prevent
AI-assisted research summary: A dominant service provider must not block market entry or distant competition by pricing a service below its cost.
24. A dominant service provider shall not prevent market entry or distant competition by applying a tariff below the cost of providing a service. the approved - 25 Verify source ↗
A party aggrieved by the decision of the
AI-assisted research summary: An aggrieved party may ask the Authority to review a regulations decision within 14 days after the approved tariff is issued.
25.- A party aggrieved by the decision of the these Authority on Regulations may, within fourteen days from the date of issuance of the approved tariff, apply to the Authority for review on the following grounds- tariff made under (a) there is a mistake or error apparent on the face of the records; or (b) there is a discovery of new and important matter or evidence which after the exercise of due the applicant’s diligence was not within knowledge or could not be produced by him at the 11 GN. No. 82 (contd.) Land Transport Regulatory Authority (Tariff) time when the order was made. Review - 26 Verify source ↗
A person aggrieved by the decision of the
AI-assisted research summary: A person aggrieved by the Authority’s decision may apply to the Authority for review within 14 days.
26. A person aggrieved by the decision of the Authority under these Regulations may, within fourteen days from the date of the decision, apply to the Authority for review, as prescribed in the Rules. Revocation G.N. No. 92 of 2009 - 27 Verify source ↗
The Surface and Marine Transport Regulatory
AI-assisted research summary: This section revokes the Surface and Marine Transport Regulatory Authority (Tariff) Regulations and includes tariff application and review form requirements.
27. The Surface and Marine Transport Regulatory Authority (Tariff) Regulations are hereby revoked. 12 GN. No. 82 (contd.) Land Transport Regulatory Authority (Tariff) FIRST SCHEDULE ________ (Made Under Regulation 8 ) APPLICATION FOR NEW TARIFF A. PARTICULARS OF AN APPLICANT Applicant Name in full …………...………………………......................................... (Name/Company/Partners - in BLOCK LETTERS) Company Incorporation Number (if it is a company) ……………………………… Postal Address …………………………………………..…………………………. Office Mobile Phone:. ……….…....... Applicant’s Mobile Phone …….…. Plot Number: ………….. E-mail: ……………………………………………………………………………… Physical Address: Street: ……………. Office Number:....... Name: …………………………….…......................................................................... Qualification: …………….……….............................................................................. Mobile Phone:…………………… ………………………………………………. Brief description of the new: ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… B. DOCUMENTS TO BE PROVIDED DURING APPLICATION Applicant shall submit the following: (a) valid operator’s license or proof of application for a licence; (b) current business bank statement; (c) business plan; (d) proposed tariff; (e) worksheet of the calculations made to arrive at the proposed tariff; (f) proposed special tariff for pupils; (g) Any other supporting document that may be required by the authority. The Authority may require more information and documents at any time. I hereby declare that to the best of my knowledge and belief all the information provided in this application is true. Full name: ………………………….………... Signature:……..………………… Designation: …………………………………. Date:.…………………………… FOR OFFICIAL USE ONLY Designation: ………………………………….. Official Stamp: ………………………………. Date: ………………………………………… CAUTION: (a) Initial each page. (b) Knowingly making a false statement for the purpose of obtaining the tariff is an offence and is punishable by fine or imprisonment. (c) Any change of particulars provided in this form must be communicated to the LATRA otherwise you will be committing an offence under these regulations. 13 GN. No. 82 (contd.) Land Transport Regulatory Authority (Tariff) SECOND SCHEDULE ________ (Made Under Regulation 9) ________ APPLICATION FOR REVIEW OF TARIFF A. PARTICULARS OF AN APPLICANT Applicant Name in full …………...…………………………............................... (Name/Company/Partners - in BLOCK LETTERS) Company Incorporation Number (if it is a Company) ……………………….... Postal Address ………………………………………………………………….. Office Phone:.……..... E-mail: ……………………………………………………………………… Physical Address: Street: ………. Applicant’s Mobile Phone:...……. Office Number:........ Mobile Plot Number:…….. Name: ……………………………....................................................................... Qualification: …………………………………………………………… ……… Mobile Phone:……………………………………………………………………………. Brief description of the review: …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… B. DOCUMENTS TO BE PROVIDED DURING APPLICATION Applicant shall submit the following: (a) valid operator’s licence; (b) proposed tariff; (c) reasons and justifications for tariff review including how consumers will benefit from such a review; (d) worksheet of the calculations made to arrive at the proposed tariff; (e) audited accounts for the immediate preceding three consecutive years or less depending on the age of the entity; performance report including detailed technical operational and financial analysis for the past five years or less depending on the age of the entity; (f) (g) Any other supporting document as may be required by the Authority. The Authority may require more information and documents at any time. I hereby declare that to the best of my knowledge and belief all the information provided in this application is true. Full Name: ………………………….…………………... Signature:……… ………………........ Date:.…………… ……………….. Designation: ……………………………………………. 14 Land Transport Regulatory Authority (Tariff) GN. No. 82 (contd.) FOR OFFICIAL USE ONLY Received Date: ………………………………………… Official Stamp CAUTION: (d) Initial each page. (e) Knowingly making a false statement for the purpose of obtaining the tariff is an offence under and is punishable by fine or imprisonment. (f) Any change of particulars provided in this Form must be communicated to the LATRA otherwise you will be committing an offence under these Regulations. Dodoma, ISACK ALOYCE KAMWELWE, 28th January, 2020 Minister for Works, Transport and Communications 15
Part
PART I
- 1 Verify source ↗
These Regulations may be cited as the Land
AI-assisted research summary: These Regulations may be cited as the Land Transport Regulatory Authority (Tariff) Regulations, 2020.
1. These Regulations may be cited as the Land Transport Regulatory Authority (Tariff) Regulations, 2020. Application - 2 Verify source ↗
These Regulations shall apply to service providers
AI-assisted research summary: These Regulations apply to service providers of regulated services.
2. These Regulations shall apply to service providers of regulated services. Interpretation Cap.413 Cap.413 - 3 Verify source ↗
In these Regulations unless the context otherwise
AI-assisted research summary: This section defines key terms used in the Regulations, including “Authority,” “consumer,” “regulated services,” “regulated sector,” “service provider,” and “tariff.”
3. In these Regulations unless the context otherwise requires: “Act” means the Land Transport Regulatory Authority Act; “Authority” means Land Transport Regulatory Authority under section 4 of the Land Transport established Regulatory Authority Act; “consumer” means a person who uses regulated services; “discount scheme” means a systematic arrangement for tariff reduction; “dominant service provider” means a service provider who acting alone, may profitably and materially restrain or reduce competition in for a significant period of time and whose share of the the market market exceeds thirty five per cent; “land transport” includes rail, road and cable transport; “prospective service provider” means a person intending to supply regulated services; 3 GN. No. 82 (contd.) Land Transport Regulatory Authority (Tariff) “pupil” means a scholar of nursery, primary or secondary school while in uniform or carrying school identity card; “registered consumer” includes LATRA Consumer Consultative Council or duly registered consumers’ association; “rate table” means a schedule of approved tariff in a format of a table; “rate of return” means a ratio of money gained or lost unrealized) on an investment a (realized or relative to the amount of money specific period of time; invested over “regulated services” means any services supplied or offered for supply in regulated sector and includes services which the Authority declares to be such services under the Act; “regulated sector” means land transport, rail transport, commercial road transport, commercial underground and cable transport; “service provider” means a person licensed to provide or engage in regulated services; service; “tariff” means a charge raised by a service provider for the supply of “tariff book” means a book prepared by a service provider prescribing “transport carrying unit” means a train coach and wagon, bus, truck, motorcycle or a tricycle. approved tariff; and PART II REGULATED SERVICES Services subjected tariff regulation to
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