OUTA says no to provincial fuel levy
The Organisation Undoing Tax Abuse (OUTA) firmly opposes the implementation of provincial fuel levies.
“We are deeply concerned by Western Cape Finance MEC Ivan Meyer’s investigation into the viability of a provincial fuel levy,” says Rudie Heyneke, OUTA’s Transport Portfolio Manager.
“As far as OUTA is concerned, the citizens of this country are over taxed and have shouldered the burden of maladministration for far too long. The mere mention of an investigation into provincial fuel levies cannot and should not be tolerated,” says Heyneke.
The national fuel levies were increased by former Finance Minister Malusi Gigaba by a total of 52c a litre earlier this year, an increase that will be implemented on 4 April 2018. The total general fuel levy and RAF levy currently stand at R5.30 per litre of 93 octane petrol. To fill up a 60 litre tank, motorists will pay R318.00 in fuel levies.
“Taxes and levies already make up an above-average portion of the existing fuel price. Any special tax introduced, approved and implemented gives government a foot in the door and increases on these are then just a matter of time,” explains Heyneke.
The Golden Arrow bus company has already indicated that an additional provincial fuel levy will make transport costs more expensive for commuters. Additional fuel costs will also influence the flow of goods, products and services, in this case, between the Western Cape and other provinces.
It is important for the residents of the Western Cape to understand that passing this levy requires a lengthy process and that OUTA is committed to ensuring that every letter of the law is followed and that this will be a transparent process where residents will be kept informed.
“We will not go quietly and this statement is a warning to the Western Cape government and any other provincial government which is considering provincial taxes and levies. OUTA will oppose any additional levy which we know will have dire consequences for residents at all levels of the economic spectrum,” says Heyneke.