Fuel, RAF levies should be reviewed: AA
Commenting on Finance Minister Pravin Gordhan's budget policy, the Automobile Association of South Africa has called for a review of the current fuel and Road Accident Fund levies.
Gordhan said the fuel and RAF levies would go up by 30 and 9-cents a litre respectively - effective from April 1.
The AA's Layton Beard says motorists will now be paying R4.78 on indirect taxes for every litre of petrol bought.
"These increases are a cause for great concern and comes at a time when South African motorists are already buckling because of a weak economy. The increases will effectively mean for every litre of petrol motorists are going to be paying around 35% on indirect taxes and this just means that South Africans are going to have to dig even deeper in their pockets at a time when many are questioning government spending," he said.
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Currently, the increased levies would mean motorists are spending around R239 on indirect taxes every time they full up a 50-litre tank of fuel.
Beard says further consultations on these figures should take place.
"Some discussion should take place on the way in which the money is gathered through these levies is spent and more accountability in terms of how this money is spent. Certainly, we can't be going back to consumers every time that money is needed and imposing taxes as is in this case," he said.
