MPs say impact of fuel levy increase will be ‘far worse’ than VAT hike
Minister of Finance Enoch Godongwana announced the increase of 16 cents per litre for petrol and 15 cents per litre for diesel during his budget speech on Wednesday.
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CAPE TOWN - Members of Parliament (MPs) have questioned the National Treasury’s decision to increase the fuel levy, saying its impact will be far worse than a value-added tax (VAT) increase.
Minister of Finance Enoch Godongwana announced the increase of 16 cents per litre for petrol and 15 cents per litre for diesel during his budget speech on Wednesday.
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Godongwana also briefed a joint meeting of Parliament’s finance committees on Friday on the budget and fiscal framework.
African National Congress (ANC) MP, Soviet Lekganyane, asked what plans are in place to shield the poor from the increase.
“The increase in the fuel levy, which is going to have impact or influence in the rising costs, what are the plans that are there to protect the poor and the vulnerable?”
The Economic Freedom Fighters (EFF)’s Omphile Moatwe said the increase won’t make much of difference in terms of revenue and its impact will be more devastating than the failed 0.5 % VAT increase proposal.
“Every worker that goes to work, whether with a train, whether with a taxi, whether with a car gets impacted. So, it’s a regressive tax that is far worse than the VAT.”