Government says fuel tax levies necessary
While there is an uproar about the rising cost of fuel, government says it will not tamper with the fuel levy or the Road Accident Fund in order to try and offset the fuel price.
READ: Fuel price increase: More bad news for motorists
The Inter-Ministerial Task Team briefed the media today, amid growing concerns among South Africans over the unrelenting price hikes.
Energy Minister Jeff Radebe says government needs fuel tax levies to raise revenue.
“All economies of our size, that do not produce oil: They levy a tax on fuel as one of the most efficient instruments for raising revenue for governments worldwide,” the minister has said, “This is revenue that is used for - amongst other things - the compensation of victims of vehicular accidents and -generally - for the improvement of road infrastructure and other societal needs”.