EFF's urgent application against fuel levy hike
The Western Cape High Court is on Tuesday hearing an urgent application by the EEF for the increase of the fuel levy to be scrapped.
The General Tax Levy increase is expected to take effect on Thursday after finance minister Enoch Godongwana increased the fuel levy by 16 c/l and 15 c/l on petrol and diesel respectively.
The increase was seen by many as a replacement for the proposed VAT hike that was rejected. However, experts have argued the fuel levy increase was meant to cover the more than R5bn intended for the Road Accident Fund, which they say has not been receiving funding in the past three years.
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Eyewitness News
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Implementation of fuel levy hike a blow to millions of struggling SAns, says Malema
JOHANNESBURG - Economic Freedom Fighters (EFF) leader Julius Malema says the party's failed attempt to block the fuel levy increase is not a setback for the EFF but rather a blow to millions of financially struggling South Africans. On Monday, the Western Cape High Court dismissed the EFF's application to halt the implementation of the fuel levy hike. The levy increase officially took effect on Wednesday, following the finance minister's announcement during last month's budget speech. Malema responded to the court ruling while in Pretoria on Tuesday, where he visited the family of the late actor Presley Chwenyegae. ALSO READ: EFF hellbent on having fuel levy hike scrapped, despite losing legal bid As of Wednesday, the fuel levy, often called a 'silent tax' embedded in pump prices, has increased by 16 cents a litre for petrol and 15 cents a litre for diesel. However, South African motorists are paying less for fuel after a reduction in prices attributed to lower oil prices internationally. This means motorists are now paying five cents per litre for both grades of petrol, while the price of diesel decreased by 36 cents per litre. Malema says life is becoming increasingly unaffordable for South Africans, as the cost of living continues to rise. "It was not the EFF that got rejected, it was the people of South Africa who lost because they've put an increase on fuel. Once you put an increase in fuel levy, everything else goes up." Malema says South Africans should prepare themselves for tough times ahead. "Life is difficult for our people, and to put any other increase on fuel levy will burden our people, who cannot afford." Malema added that the petrol price decrease has been eroded by the fuel levy increase.
IOL News
a day ago
- IOL News
Not about the EFF — It's about the people': Malema laments fuel Levy Blow to the poor
EFF leader Julius Malema slams the Western Cape High Court's ruling on dismissing their urgent appeal to halt the implementation of fuel levy. Image: Phando Jikelo/Parliament of SA EFF leader, Julius Malema, has denounced the Western Cape High Court's decision to reject his party's urgent attempt to halt the implementation of a rise in the fuel levy, describing it as a severe blow to South Africans who are already struggling financially. The EFF sought to have the raise, which the finance minister had announced in last month's national budget, blocked by the court on Monday. Pump prices increased by 16 cents per litre for petrol and 15 cents for diesel on Wednesday, the day the new fuel levies went into force. 'The court ruling is not a setback for the EFF,' Malema said during a visit to the family of late actor Presley Chweneyagae in Pretoria on Tuesday. 'It is a setback for the millions of South Africans who are already battling the high cost of living.' Often referred to as a "silent tax," the fuel levy is embedded in the price consumers pay at the pump—impacting transport, food, and goods across the board. 'Once you put an increase on fuel, fuel levy, everything else goes up. The bread that goes to children in schools, the food that goes to patients in hospitals, all of that is going to be affected. We are already saying life is difficult for people as it were now,' Malema said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ While the levy increase took effect, South African motorists simultaneously received minor relief at the pumps due to declining global oil prices. Petrol prices have decreased by five cents per litre across both grades, while diesel has dropped by 36 cents per litre. Despite the temporary reprieve, Malema warned that the structural increase in the fuel levy adds to a growing burden on ordinary citizens. The EFF maintained that the government's continued reliance on indirect taxes like fuel levies disproportionately affects low- and middle-income households. He also called for a complete review of the country's taxation strategy in relation to basic living costs. 'To put any other increase on fuel levy, it will be a burden our people and they cannotafford. We are happy we took up that struggle,' he said. IOL Politics
IOL News
a day ago
- IOL News
EFF's challenge to fuel levy hike dismissed
EFF National chairperson Noluthando Molutshungu and Convernor of deployees to the Western Cape Rebecca Mohlala at the Western Cape High court on Tuesday to challenge the fuel levy increase. Image: Ian Landsberg The Western Cape High Court has dismissed the EFF's urgent application to interdict the 4% fuel levy increase, which takes effect on Wednesday. The EFF had filed the urgent court case, challenging Finance Minister Enoch Godongwana's decision to increase the General Fuel Levy. The levy increased by 16c per litre on petrol and 15c per litre on diesel. The EFF through Advocate Mfesane Ka-Siboto had argued that the increase would unfairly burden the working class and poor, worsening inequality and violating constitutional rights. He said the minister's decision lacked both rationality and parliamentary oversight. Ka-Siboto further told the court, in accordance with the Money Bills Amendment Procedure and Related Matters Act, only a law could serve as the proper instrument for the minister to impose a tax. The EFF claimed that Godongwana overstepped his powers by announcing the fuel levy increase in his Budget speech, without parliamentary approval. "What is clear is that the minister is imposing tax," Ka-Siboto said, citing the Money Bills Amendment Procedure and Related Matters Act as the legal framework Godongwana should have followed. The EFF also argued that the fuel levy increase is both economically unjust and unconstitutional. "It deepens inequality and undermines access to essential goods and services. We are committed to fighting the fuel levy increase in court and in parliament," the party said. However, Advocate Kameel Premhid, representing the national Treasury, argued that the fuel levy increase is not a tax but rather a regulation charge. Premhid maintained that the minister has always had the power to adjust fuel levies as part of the budgetary process. "Regulatory charges bring in money, so they might raise revenue. But that doesn't make it a tax, and just because a tax also raises revenue, the two are not the same thing." The Western Cape High Court's dismissal of the EFF's bid means the fuel levy increase will go ahead as planned. The EFF may still pursue its challenge to the fuel levy increase in Part B of its application, which seeks to review and set aside Godongwana's decision. Meanwhile the Department of Minerals and Energy has confirmed that fuel prices will decrease from today, despite the hike in the General Fuel Levy. Providing reasons for the fuel adjustments, the department said the average Brent Crude oil price decreased from 66.40 US Dollars (USD) to 63.95 USD under the period under review while the Rand appreciated on average, against the US Dollar (from 18.84 to 18.11 Rand per USD) . Based on current local and international factors, the fuel prices have been adjusted as follows: - Petrol 93 and 95 (ULP & LRP) is down by 5c per litre - Diesel (0.05% sulphur and 0.005% sulphur) has dropped by 36c per litre - Illuminating Paraffin (wholesale) is down by 56c per litre | Additional Reporting Staff Reporter Cape Times
