Mbalula shuts down rumours that fuel levy increase will fund e-tolls

There have been speculations of a possible fuel levy increase to cover the Gauteng Freeway Improvement Project (GFIP). But this is just rumour-mongering, said Minister of Transport Fikile Mbalula.

SPECULATION OF FUEL PRICE DROP IS TO INCREASE LEVY TO PAY FOR E-TOLLS

The Organisation Undoing Tax Abuse (Outa) raised concerns that Minister of Finance Enoch Godongwana may use the current fuel price drop to raise the fuel levy.

According to OUTA, this additional revenue is to cover the Gauteng freeway improvement bonds, which the e-toll saga failed to do, Outa CEO Wayne Duvenage said.

“Recently, Minister of Transport Fikile Mbalula indicated that an announcement on the e-toll decision is expected to coincide with the Minister of Finance’s medium-term budget policy statement, due in October. Furthermore, there have been strong hints that the Minister of Finance will increase the fuel levy, to offset the scrapping of e-tolls,” Duvenage said.

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MBALULA DISMISSES SAYS SUCH RUMOURS ARE TO CAUSE ANXIETY

Mbalula responds to such rumours, stating that this was just to create anxiety among motorists.

“It must be made categorically clear that government has not made any pronouncements on this matter. We, therefore, appeal to all stakeholders to desist from rumour-mongering that is intended to create anxiety among motorists.”.

Minister Fikile Mbalula

According to Mbalula, the Automobile Association (AA) also peddled similar rumours.

AA spokesperson Layton Beard told the media that the funding of the GFIP should come from a portion of the fuel levy. Beard said this should be at no extra cost to the consumer through an increase in the fuel levy and fuel prices.

Mbalula says he has engaged both organisations to discuss matters of mutual interest. The Minister says he remains committed to constructive dialogue to resolve the challenges.

“There is no reason to be alarmist on possible pronouncements on the government’s decision on the funding of the Gauteng Freeway Improvement Project. I urge everyone to await the formal pronouncements and not engage in speculation that offers no solution to our challenges.”

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