High court rejects EFF's bid to stop fuel levy increase
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South Africa's High Court dismissed a lawsuit filed by the opposition Economic Freedom Fighters party that sought to stop the government from raising fuel levies.
The higher charges were proposed last month by Finance Minister Enoch Godongwana in his third attempt to present an annual Budget that can secure parliamentary approval. Previous iterations were rejected by the Democratic Alliance, the second-largest party in the nation's 10-party coalition government, because they proposed hiking value-added tax.
The EFF, South Africa's fourth-largest party, argued that raising fuel costs would hurt the poorest South Africans and undermine economic growth, and that proper procedures weren't followed to introduce additional taxes.
Godongwana denied acting unlawfully and said that leaving the levy unchanged would leave a R3.5 billion hole in the state's finances that would have to be filled by curtailing services, increasing borrowing or raising other taxes.
'It is ordered that the application is dismissed with costs,' Judge Nathan Erasmus said in a ruling handed down in Cape Town on Tuesday.
Godongwana's latest Budget, which is currently being processed by lawmakers, has been welcomed by investors and endorsed by the business-friendly DA.
The planned levy increase of 16 cents per litre for petrol and 15 cents per litre for diesel is scheduled to come into effect on Wednesday.
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