DA applauds R3 fuel levy cut but warns against rising national debt

The Democratic Alliance (DA) has welcomed the Finance Minister’s announcement to cut the general fuel levy by three rand a litre as from Wednesday, in an attempt to cushion the blow of the price hikes spurred by the Middle East conflict.

A week ago, the DA proposed slashing both the general fuel levy and the Road Accident Fund each by 50% to yield a similar saving. 

But Minister Enoch Godongwana said on Tuesday the RAF levy would remain untouched. 

With the fiscus standing to lose R6-billion in tax revenue in the first month of the fuel levy reduction, the DA is questioning how this shortfall will be plugged.

The party’s Mark Burke last week proposed that unused funds within the Sector Education and Training Authorities be returned to the fiscus, as well as a surplus at the Compensation Fund. 

Burke says the country can’t afford more debt. 

"Under the circumstances, we will give him a 17-cent temporary discount, although we will keep pushing for further relief. We are closely watching how he plans to do this. We can’t afford more debt, nor can we afford more taxes. The only option is to go after government inefficiency and patronage pots, such as the SETAs and the Compensation Fund. The DA is a part of government, but we will continue to dig in and fight loudly when the ANC parts of government are callous enough to do economic harm."