Latest news with #EconomicFreedomFighters
Bloomberg
28 minutes ago
- Business
- Bloomberg
South Africa's High Court Rejects Bid to Halt Fuel Levy Increase
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 South African
2 hours ago
- Business
- The South African
JUST IN: EFF loses court bid to interdict fuel levy increase
The Western Cape High Court has dismissed the Economic Freedom Fighters (EFF) application to interdict the 4% fuel levy increase. The 4% hike was announced by the Minister of Finance, Enoch Godongwana, when he tabled the revised 2025 Budget Speech for the third time in May and will be effective from Wednesday, 4 June. In challenging the proposed hike, the EFF argued that the fuel levy increase places an unjust burden on the working class and the poor, who are already reeling from rising costs of living, stagnant wages, and ongoing economic hardship. The party maintained that the levy is both economically unjust and unconstitutional, as it deepens inequality and undermines access to essential goods and services. Moreover, the EFF had argued that the standing committee on finance sits on Wednesday 4 June and it is only then that such an increase can be approved. Not before, as the 2025 fuel levy increases have been slated to go into effect the same day. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.
Eyewitness News
3 hours ago
- Business
- Eyewitness News
EFF argues in court Godongwana went beyond his powers when increasing fuel levy
CAPE TOWN - The Economic Freedom Fighters (EFF) has started presenting its arguments in the Western Cape High Court, insisting that Finance Minister Enoch Godongwana went beyond his powers when increasing the fuel levy. The EFF argued that Godongwana "pre-empted and bypassed" the National Assembly when he made the announcement in his budget speech in May. The party wants the high court to suspend the fuel levy increase of 16 cents and 15 cents per litre for petrol and diesel, respectively, and to set aside the minister's decision. The EFF's senior counsel, Advocate Mfesane Ka-Siboto, told the court that their case was not a constitutional challenge, but rather they were seeking interim relief from the increase which comes into effect at midnight. He said only the National Assembly plenary had the power to impose a tax, saying the levy increase should be treated as such. Ka-Siboto said that a money bill was the only instrument that the minister could use to impose tax as required by the Money Bills Act. "What a minister cannot do is increase VAT or levy for purposes of revenue collection," said Ka-Siboto. In part of its application, the EFF wants an interim order suspending the increase before the new levy kicks in on Wednesday. It also wants the court to set aside the minister's decision. ALSO READ:
Zawya
3 hours ago
- Business
- Zawya
South Africa's EFF party seeks to block fuel tax increase
JOHANNESBURG - South African ultra-left opposition party, the Economic Freedom Fighters (EFF) went to court on Tuesday to try to block a fuel tax increase that the finance minister proposed in last month's budget. The 4% increase in the levy South Africans pay on petrol and diesel is due to kick in on Wednesday, but the EFF wants the High Court to suspend it on the basis that it is unjust and that the minister did not follow proper parliamentary process. "This increase places an unjust burden on the working class and the poor, who are already reeling from rising costs of living, stagnant wages, and ongoing economic hardship," the EFF said in a statement before a court hearing in Cape Town. In a sworn statement, Minister Enoch Godongwana said he had the right to raise the fuel levy and that the EFF's case appeared aimed at blocking passage of the budget, which he already had revised twice due to disagreements in the coalition government. Godongwana said that if the court blocks the tax increase, it would leave a revenue shortfall of at least 3.5 billion rand ($196 million), which would have to be recovered through additional borrowing, taxes or spending cuts. He has already backtracked on a contentious plan to raise value-added tax, under pressure from the second-biggest political party in the coalition, the Democratic Alliance, and others outside it. Investors want to see evidence that Africa's biggest economy can rein in spending and hit revenue targets after a steep rise in public debt over the past two decades.
Reuters
5 hours ago
- Business
- Reuters
South Africa's EFF party seeks to block fuel tax increase
JOHANNESBURG, June 3 (Reuters) - South African ultra-left opposition party, the Economic Freedom Fighters (EFF) went to court on Tuesday to try to block a fuel tax increase that the finance minister proposed in last month's budget. The 4% increase in the levy South Africans pay on petrol and diesel is due to kick in on Wednesday, but the EFF wants the High Court to suspend it on the basis that it is unjust and that the minister did not follow proper parliamentary process. "This increase places an unjust burden on the working class and the poor, who are already reeling from rising costs of living, stagnant wages, and ongoing economic hardship," the EFF said in a statement before a court hearing in Cape Town. In a sworn statement, Minister Enoch Godongwana said he had the right to raise the fuel levy and that the EFF's case appeared aimed at blocking passage of the budget, which he already had revised twice due to disagreements in the coalition government. Godongwana said that if the court blocks the tax increase, it would leave a revenue shortfall of at least 3.5 billion rand ($196 million), which would have to be recovered through additional borrowing, taxes or spending cuts. He has already backtracked on a contentious plan to raise value-added tax, under pressure from the second-biggest political party in the coalition, the Democratic Alliance, and others outside it. Investors want to see evidence that Africa's biggest economy can rein in spending and hit revenue targets after a steep rise in public debt over the past two decades. ($1 = 17.8613 rand)
