Extension of reduced fuel levy being considered; announcement soon

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Finance Minister Enoch Godongwana is planning to announce next week whether the fuel levy reduction will remain in place.  

 

He said this during a National Assembly meeting on Tuesday, after Build One South Africa leader, Musi Maimane, urged him to keep the reduced levy while the war in the Middle East continues. 

 

The government recently reminded motorists that the temporary reduction of the levy by R3 will be in place until 5 May. This, however, is subject to review over the next two months. 

 

 

 

Godongwana has indicated that he’s been in discussion with Mineral Resources Minister Gwede Mantashe.  

 

“I will probably make the necessary announcement on the 28th [of April] on Tuesday, in that regard,” said Godongwana.  

 

During Tuesday’s Parliament sitting, reference was made to the South African Revenue Service (SARS) having achieved R2 trillion in collections, which Maimane believes could offset the reduced levy.  

 

However, Godongwana noted that despite SARS’s achievements, there are still shortfalls.

 

“What he [Maimane] misses is that the expenditure is 2.4 trillion. Which means we are 400 billion short. The debt service costs are also of a similar amount, which means this year we’ll have to borrow about R800 billion,” said Godogwana.  

 

According to reports, the fuel levy cut is costing the country around R6 billion. Godgongwana had previously noted that the levy cut could only be offered for a limited time.  

 

Caitlin Maledo
Caitlin Maledo
Caitlin is an enthusiastic journalist, that has been exploring her interest in broadcast media since 2019. With a natural curiosity for the world around her, you'll always find her poking around hidden gems throughout Cape Town and surrounds.

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