Fuel levy

Twitter/ DA

“Reduce the fuel levy by R1” – DA and OUTA propose new plan to combat costs

Would this plan work?

Fuel levy

Twitter/ DA

With petrol prices at record highs and more increases on the horizon, the DA and Organisation Undoing Tax Abuse (OUTA) have put forward a new proposal. While Ramaphosa has his best ministers on the job, the public wants an instant solution.

Reduce the fuel levy? Maimane says yes

On Tuesday, the DA, OUTA and multiple taxi associations held a joint press conference to announce their plan.

According to DA Mmusi Maimane and the group, 2018 will be remembered as “the year in which the ANC government declared war on poor South Africans.”

With VAT having been increased to 15%, South Africa has seen an increase in the petrol price from R14.12 to over R16 per litre, that’s all just in the months since Cyril Ramaphosa has become president.

“This equates to, on average, almost R100 more every time you fill your tank. Every cent of this massive increase is absorbed by ordinary South Africans, either directly through increased transport costs, or indirectly by the resulting rising food prices,” Maimane said.

So what can be done?

Maimane and OUTA point out that 33% of the country’s fuel price is made up of two levies: the general fuel levy and Road Accident Fund (RAF).

“Currently, levies and duties account for R5,30 of every litre of 95 octane petrol, or R265 of every 50L fuel tank.”

With numerous claims of corruption and mismanagement at the RAF, the group believes that the “exorbitant” levies simply can not be justified.

The DA and OUTA have now called on Ramaphosa and government to reduce the RAF and general fuel levies by R1 per litre or 20%. This will then allow the petrol price to be brought down to under R15per litre.

While that could potentially provide instant relief to consumers, Maimane also wants government to table a debate in Parliament which will consider the structure of such levies.

Thirdly, there is a call to place the RAF under “independent and external” administration.

This would hopefully also help in dealing with the R160 billion backlog in unpaid claims.

The taxi groups, OUTA and the DA will now all mobilise South Africans to join a “collective mass protest” outside the office of National Treasury in Tshwane.

The march will take place on the morning of Tuesday 31 July.