Latest news with #Outa
The Citizen
21-05-2025
- Business
- The Citizen
Budget 3.0: First fuel levy increase in three years – Here's by how much
The general fuel levy will increase by 16 cents per litre for petrol, and by 15 cents per litre for diesel. Finance Minister Enoch Godongwana's third attempt at delivering the budget speech brought an unwelcome surprise for motorists. He announced the fuel levy will increase for the first time in three years. Godongwana, while delivering the budget on Wednesday in Cape Town, stated that the levy increase is the only new tax proposal he is announcing in the latest version of his budget. 'It remains vital that we still take actions to increase revenue to protect and bolster frontline services, while expanding infrastructure investments to drive economic activity. 'To this end, this budget proposes an inflation-linked increase to the general fuel levy.' ALSO READ: Budget 3.0: Alcohol and cigarette prices will increase — here's by how much How much will the fuel levy increase by? Godongwana said the general fuel levy will increase by 16 cents per litre for petrol and 15 cents per litre for diesel. This will take effect from 4 June 2025. He, however, did note that this alone will not close the fiscal gap over the medium term. In the second budget speech delivered on 12 March 2025, Godongwana did not increase the fuel levy, stating that the decision was made to help South Africans cope with the high cost of living. However, he has made a U-turn after scrapping the value-added tax (VAT) increase. ALSO READ: Cutting fuel levies: government all talk, no action – Outa What is the fuel levy? The fuel levy is a tax charged on every litre of fuel sold, with a portion going to the government and another to the Road Accident Fund (RAF levy) to compensate victims of motor vehicle accidents. The levy amounts to 18% of the retail price, while the RAF levy is about 10%. This has remained unchanged since 2022 to mitigate the effects of higher inflation resulting from increased fuel prices. Why the increase? The increase is intended to aid in revenue collection. He said the aim of the previous budget made on 12 March was to balance the necessity of growing the economy with the equally urgent need to repair and rebuild our public finances. Tax revenue projections have been revised down by R61.9 billion over the three years. 'This reflects the reversal of the VAT increase and the much weaker economic outlook.' NOW READ: Godongwana cuts government spending to offset VAT shortfall
IOL News
12-05-2025
- Automotive
- IOL News
Department of Transport seeks interim fix for licence card backlog
The Department of Transport says it is trying to find an interim solution to address the issue of reliance on the current driving licence card machine. The Department of Transport is on a mission to find an interim solution to address the issue of reliance on the current driving licence card machine. The department was responding to a statement by the Organisation Undoing Tax Abuse (Outa) following the announcement that the machine had been repaired and operations resumed. The breakdown of the machine, according to the department, led to a backlog of more than 700 000 outstanding cards waiting to be printed. Outa said the machine is prone to regular breakdowns and is bound to break down again. The organisation said the machine also lacks modern security features. Outa said it is still waiting for the department to provide a solution to this problem. This was the 160th time the printer had broken down, based on a recent statement from the department. 'It is a relief to hear that the machine has been repaired, but the question is how soon it will break down again. This old card machine is prone to regular breakdowns and is bound to break down again. It is also seriously lacking in modern security features,' said Stefanie Fick, Outa's executive director. Fick said the long-term solution is the finalisation of the new driving licence card solution, adding that this should be done either through a tender awarded to a private company or through the government printing works, which manages the printing of the ID cards for the Department of Home Affairs. 'We want a new machine procured, and we want the validity of the cards extended to 10 years.' In its announcement on Thursday, the department said there was a backlog of 747 748 cards waiting to be printed, with a maximum production capacity of 14 000 to 19 000 cards in a 14-hour shift. The Driving Licence Card Account (DLCA) has been trying to procure another machine for years, but repeatedly cancelled and reissued the tender. Department of Transport spokesperson, Collion Msibi, said they are working on finding an interim solution in order to address the issue of reliance on the current machine. Msibi added an interim solution would be a better solution while the department awaits the court decision on the declaratory order on the tender process. In August last year, the DLCA awarded the tender for the new machine to Idemia and Security South Africa for R898 597 131. In March 2025, Transport Minister Barbara Creecy announced that she had instructed her department to lodge a declaratory order regarding the tender. Her decision was influenced by the findings from the Auditor-General (AG) report, which identified instances of non-compliance with the required procurement process. However, Outa said it appeared that the court application did not go ahead. The organisation said its chief executive officer, Wayne Duvenage wrote to the Minister and asked for an update on the situation on March 27. However, no reply has been received yet. In the letter, Duvenage said Outa had heard that the department's legal department and Director-General had warned Creecy against cancelling the Idemia contract. Duvenage said the AG report was clear in its flagging of several irregularities and recommended that the awarding of the tender be cancelled. The organisation said the DLCA does not appear to have issued a new tender for the machine, instead the entity issued a tender looking at how to make more money out of the driving licence cards. Cape Argus
The Citizen
04-05-2025
- Automotive
- The Citizen
Expect delays when applying for driver's licences: SA's only card printer still broken
Expect delays when applying for driver's licences: SA's only card printer still broken Motorists have been warned about delays when applying for new and renewed driver's licences, as the country's only card printer is still broken, Pretoria Rekord reports. According to the National Department of Transport, the machine used to print the cards has been broken since February. Tshwane spokesperson Selby Bokaba said it could take several weeks before the machine is fully operational. 'Ordinarily, a licence card application takes between six to eight weeks to be issued. Drivers are advised to apply for their driving licence renewal before they expire, to enable them to qualify for a three-month grace period,' he said. He said those who have already applied for licence cards can present proof of the renewal application to law enforcement officers if they are pulled over while driving. 'The other option is to apply for a temporary driving licence, which is valid for six months,' Bokaba said. According to The Citizen, the licence card printing machine is 26 years old and has had almost 160 breakdowns, which have become more frequent. Transport Minister Barbara Creecy's spokesperson Collen Msibi told the publication that the department is working on repairing the machine should be running again by mid-May. Outa has recently written to Creecy, requesting urgent feedback on the ongoing breakdown of the licence card printing machine. 'Motorists are once again being subjected to delays and inconvenience due to the ongoing failures of this outdated system. The Department must explain why the machine is not operational, despite previous repairs and maintenance contracts,' Outa's CEO Wayne Duvenage said. Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
