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IOL News
7 days ago
- Business
- 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
IOL News
03-06-2025
- Business
- IOL News
Western Cape High court dismisses EFF's challenge to fuel levy increase
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, set to take effect on Wednesday, June 4. The EFF had filed a Notice of Motion, challenging the Minister of Finance, Enoch Godongwana's decision to increase the general fuel levy. They sought to have the application heard as an urgent matter, dispensing with the usual requirements for forms and service on Tuesday. The party 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, deepening inequality and undermining access to essential goods and services. "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, Treasury senior counsel Advocate Adv Kameel Premhid argued that the fuel levy increase is not a tax but rather a regulation change. Premhid maintained that the minister has always had the power to adjust fuel levies as part of the budgetary process. Premhid told the court that the increase is not a tax but a regulation. "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 increase will see diesel prices rise by 15 cents per litre and gasoline by 16 cents per litre. 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. EFF National chairperson Noluthando Nolutshungu said the fuel levy increase is expected to have significant economic consequences, particularly for low-income households and businesses already struggling with high living costs. She warned that the increase would place an "unjust burden" on the working class and the poor, who are already reeling from rising living costs, stagnant wages, and ongoing economic hardship. The party has vowed to continue challenging the decision in court and in parliament.
The Citizen
03-06-2025
- Business
- The Citizen
BREAKING: Fuel levy hike to go ahead as EFF fails in court
The levy increase is scheduled to be implemented on Wednesday. Petrol pumps are pictured at a filling station in Melville on 20 January 2021. Picture: Tracy Lee Stark The EFF has lost its urgent bid to halt the upcoming increase in the general fuel levy. The Western Cape High Court in Cape Town ruled against the party on Tuesday, a day before the new levy was set to take effect. The EFF had sought an urgent interdict in Part A of its court application to suspend the planned hike of 16 cents per litre for petrol and 15 cents for diesel. In Part B of the application, the EFF called for a review and Finance Minister Enoch Godongwana's decision to be set aside. The party also asked the court to order the minister to pay legal costs. ALSO READ: 'We have a National Treasury problem': Fuel levy hike defended amid criticism over tax strategy Advocate Mfesane Ka-Siboto, representing the EFF in court, argued that the minister's decision lacked both rationality and parliamentary oversight. Ka-Siboto 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. 'What is clear is that the minister is imposing tax,' the lawyer said He cited the Money Bills Amendment Procedure and Related Matters Act as the legal framework the minister should have followed. Ka-Siboto also warned that the levy hike, once enacted, would be irreversible. This is a developing story
Eyewitness News
03-06-2025
- 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:
