DA welcomes fuel levy cut, urges efficient spending not more debt
The Democratic Alliance (DA) on Tuesday welcomed the R3-a-litre fuel levy decrease, with Finance Minister Enoch Godongwana coming within close enough striking distance to the party’s proposed R3.17, it said.
On Tuesday, Godongwana and Mineral and Petroleum Resources Minister Gwede Mantashe announced that the fuel levy would temporarily be reduced from Wednesday, as part of measures to provide short-term relief to South Africans.
Petrol prices were estimated to have increased by between R5 and R6 a litre from midnight, and the R3-a-litre reduction in the fuel levy will provide some relief.
Last week DA spokesperson on Finance Dr Mark Burke said his party was willing to collaborate with Godongwana to urgently reduce the Road Accident Fund (RAF) and general fuel levies by 50% for the duration of the oil price shock, or as long as necessary.
“A 50% reduction would dampen increases by R3.17 and provide immediate and essential relief to South Africans who are staring down the barrel of a massive petrol shock in a week’s time,” he had said.
On Tuesday, Burke said South Africa could not afford to take on more national debt, urging National Treasury to refuse permission for "broken" State entities such as the Compensation Fund and Setas to keep their yearly surpluses.
“This discipline must be extended across entities. Treasury needs to look at the broader national balance sheet to give South Africans an urgent buffer,” he stated.
Further, he said the DA was curious as to how the fuel levy relief would be funded, adding that taxpayers cannot be expected to fund this relief through other forms of taxation.
“The only viable route to funding this relief is to make spending more efficient,” he explained.
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