The Inkatha Freedom Party (IFP) has written to the Speaker of the National Assembly, Hon. Mapisa-Nqakula, to request a Debate of National Importance relating to rising fuel costs – in particular, the current tax framework in the form of fuel levies.
During the past two months alone, the petrol price has increased by over R2 per litre, with yet another increase of 81 cents per litre planned tomorrow. How are South Africans – who are already struggling to make ends meet – supposed to absorb this additional cost? And it not only impacts transport, but also the cost of food and other necessities.
Of this cost, a huge percentage is swallowed up by the General Fuel Levy (GFL) and the Road Accident Fund (RAF) Levy, which are imposed with every litre of fuel purchased. The GFL comprises approximately 23%, and the RAF Levy 13%.
The IFP believes that there is an urgent need to assess the impact that the current tax framework, in the form of these levies, imposes on both the direct and indirect consumer. Government needs to come to the table and find a way to soften the impact of this blow on consumers. As ever, it will be the poorest of the poor that suffer.
In the interests of all South Africans, and particularly considering the devasting impact of the Covid-19 pandemic on livelihoods, we trust that the Speaker will respond favourably to our request.
