FF Plus demands fuel levy review

2011-04-29 11:33

The Freedom Front (FF) Plus today demanded Finance Minister Pravin Gordhan review taxes on fuel following the latest 29 cents-a-litre increase.

“The FF Plus demands that the minister of finance now lower the fuel levy in the light of the expected shock increase which will be pushing the petrol price to more than R10 a litre,” spokesperson Anton Alberts said in a statement.

Had it not been for the stronger rand which had countered the international price increase somewhat, the petrol price would have been even higher, he said.

“It will have a ripple effect on the economy and if government does not do anything about it, it will be a national disgrace.”

Government had a responsibility to soften the blow of the shock increase and therefore should review the fuel levy.

“South Africa will not always be able to rely on a stronger rand which will counter international price increases.

“We have to make internal adjustments to ensure that the fuel price does not run away,” Alberts said.

“It means that fuel levies should be lowered and price competition with regard to petrol should be allowed, as is the case of diesel.”

The forthcoming fuel increase came against the backdrop of more taxes for individuals, such as tollgate tariffs, the forthcoming electricity tariff increases and the increase in local government tariffs.

“The FF Plus remarked last month that the state will have to intervene to lighten the general tax burden or else the middle class will diminish and with it social cohesion,” Alberts said.

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