BusinessSASA Business

Why government would fall short of cash if the fuel levy is scrapped

“Scrapping the fuel levy means that the rich would also receive that benefit. So, from a point of equity and reducing poverty, it would make more sense to increase cash transfers to the poor and to leave the fuel tax as it is.” (Photo by Per-Anders Pettersson/Getty Images)

Calls have come from many quarters to do away with the general fuel levy, given its contribution to the record-breaking price of fuel. Yet, it also contributes R90-billion to the fiscus and experts contend that, should it be scrapped, the government would have few ways to raise a similar amount. 

The general fuel levy is a tax on each litre of fuel sold and is pegged at R3.93 a litre (up from R3.77 last year). The Road Accident Fund levy is R2.18 a litre (up from R2.07 last year). Combined, they add R6.11 to every litre of petrol and diesel sold in the country, according to the Automobile Association. 

Support the journalism that helps you navigate your world

Subscribe to the M&G today for just R30 for the first three months* to gain access to this story and all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

Looking for another offer?

Anathi Madubela

Anathi Madubela is a business journalist with a keen interest in the retail sector.

press releases

Loading latest Press Releases…


Content contributor at AFAL [African Alert]. Sarah is a passionate copywriter who stalks celebrities all day.

Related Articles

Back to top button