Energy Minister Gwede Mantashe was quoted by News24 earlier this week as saying that if e-tolls are scrapped then fuel levies may rise. OUTA's Wayne Duvenage comments on the fuel price. Courtesy of #DStv403
JOHANNESBURG - There are growing calls for Finance Minister Enoch Godongwana not to hike fuel levies in the February budget.
Energy Minister Gwede Mantashe was quoted by News24 earlier this week as saying that if e-tolls are scrapped, fuel levies may rise.
National Treasury now gets about R135-billion per year from the fuel levy and Road Accident Fund compared to R55-billion a decade ago.
According to a paper released by the Organisation Undoing Tax Abuse (OUTA), based on November prices, levies and taxes make up more than half of the petrol price.
OUTA's Wayne Duvenage says they have written to government about improving efficiency rather than increasing levies.
"They need money quickly, and their thinking is that let's just slap it on to these soft targets. Motorist's being one and sin taxes being one and all of this add up, it has a compounding effect," Duvenage said.
"We see the combination of those various levies and their 11 components have now increased by 126 percent over the last decade. And inflation in the last decade shouldn't have increased by 64 percent compounded. So we are double that so, we are paying double for everything."