Latest news with #fuellevy
Mail & Guardian
5 days ago
- Business
- Mail & Guardian
EFF loses fuel levy court challenge
EFF leader Julius Malema. (X) The The party's application, lodged against Finance Minister The EFF argued that it was unlawful because it was not introduced through a Money Bill, as required by section 77 of the Constitution. The party described the court's ruling as 'a betrayal of the poor and the working class' and accused Godongwana's office of sidestepping democratic procedures in the management of public finances. 'Taxation without representation is arbitrary and unconstitutional,' the party said. The ANC-led government of national unity was doing everything in its power 'to protect the interests of those who continue to benefit from the apartheid economy, while subjecting the masses of our people to economic misery'. Godongwana has insisted that he acted within existing legislation. In his He added that it had been frozen since 2021, and the increase was necessary to preserve the real value of the levy in the face of inflation and declining revenue. He warned that halting the increase would result in a R3.5 billion shortfall for the fiscus, necessitating further borrowing, spending cuts or alternative tax increases. 'The fuel levy is not a new tax. It is a regulatory adjustment falling under existing legislation and its increase does not require a Money Bill,' Godongwana argued in the affidavit, adding that freezing the levy any further would compromise the integrity of the budget and limit the state's ability to deliver services. The court's ruling allowed the increase to proceed and, on Wednesday, fuel prices rose accordingly for the month of June. However, a dip in global oil prices and modest strengthening of the rand brought slight relief for motorists. EFF leader 'It is not the EFF that got rejected; it is the people of South Africa who lost. When you increase fuel, you increase everything, transport, food, the cost of living. Our people are already suffering. This is an extra blow to the working class,' he said. The EFF would not abandon the matter, Malema said, indicating that it was considering further legal avenues, as well as a legislative push in parliament to close loopholes that allow the treasury to act unilaterally. EFF treasurer general Omphile Maotwe, who has led the party's engagements on budget matters, reiterated its position that the matter should have come before parliament. 'The levy seeks to recover revenue after the courts invalidated the unlawful VAT increase proposed earlier this year. By using the Customs and Excise Act to bypass section 77 of the Constitution, the minister is undermining the democratic function of parliament and the people's right to participate in fiscal policy decisions,' she said. Maotwe said the EFF would submit proposals to amend the relevant sections of the Customs and Excise Act and the Money Bills Amendment Procedure and Related Matters Act to ensure no future taxation could be implemented without a parliamentary vote. While the EFF's application was dismissed, legal observers say the court did not definitively rule on the constitutional questions raised, which could leave the door open for further challenge. While the government is technically within its rights to use the Customs and Excise Act to amend levies, the broader question of public accountability in tax decisions remains unresolved, constitutional law expert professor Pierre de Vos said. 'There's a grey area here. The Constitution requires that money bills originate in the National Assembly, but there are long-standing statutes like the Customs and Excise Act that give the executive certain powers. Whether those powers are now unconstitutional is a debate we may see return to the courts.' The EFF said it would use all platforms, legal and political, to hold the treasury accountable. 'We will not rest while unelected officials continue to impose taxes behind the back of parliament. The people must have a voice in every cent that is taken from their pockets,' Malema said.
News24
6 days ago
- Business
- News24
If he comes to Parliament, we'll meet in the chamber – Malema on Shivambu's new role
Malema says the fuel levy court defeat is a loss for the public, not just the EFF, warning that rising fuel costs will worsen living conditions for ordinary South Africans. He dismisses claims of political rivalry with Floyd Shivambu, asserting the EFF's dominance in Parliament and criticising attempts to undermine the party through unity narratives. Malema acknowledges the retirement of Ekurhuleni city manager Imogen Mashazi, commending her leadership while clarifying there is no council resolution for extended benefits. EFF leader Julius Malema has rejected the notion that the party's failed court challenge against the government's fuel levy increases was a political defeat, arguing instead that it represents a broader loss for ordinary South Africans. Speaking to journalists after visiting the family of late actor Presley Chweneyagae on Wednesday, Malema said the Western Cape High Court's dismissal of the EFF's application to stop the levy hike meant that already burdened citizens would face increased costs across the board. When they rejected the EFF application for the levy, it was not the EFF that got rejected; it is the people of South Africa who lost. Julius Malema He explained that increases in fuel levies would have a cascading effect on the economy, pushing up transport costs and subsequently the prices of essential goods such as bread and food delivered to schools and hospitals. 'Our people are already struggling. To put any further increase on the fuel levy is to burden them more. They cannot afford it,' he said. Despite the court loss, Malema said the EFF had no regrets for pursuing the matter and insisted that the party, which holds about 9% of the seats in Parliament, would continue to represent the interests of the people '24 hours a day'. Malema on Shivambu and the MK Party Turning to political developments, Malema addressed questions about Floyd Shivambu's redeployment to Parliament. Shivambu, formerly with the EFF, has been redeployed by the Umkhonto weSizwe Party (MKP) to Parliament after being demoted from his position as secretary-general, after a trip to Malawi to visit controversial 'pastor' Shepherd Bushiri. Malema downplayed the significance of Shivambu's new role, suggesting that Parliament was now under the influence of a younger generation of EFF-aligned MPs who would not be easily swayed. 'I don't work with Floyd – not in Parliament, not in football, nowhere,' said Malema. If he comes to Parliament, we'll meet in the chamber. But he won't be able to undermine the superior logic of the EFF. Julius Malema He added that the MKP's presence in Parliament would not disrupt the EFF's work and emphasised his party's commitment to its parliamentary duties through well-researched and effective contributions. On black political unity Malema also addressed criticism regarding black political unity, responding to claims that the EFF had not shown a willingness to unite with other black-led parties. 'The EFF has always advocated black unity,' said Malema. 'But forming a new party and then calling for unity is disingenuous; that's already a division.' READ: WATCH |'That man said, kill the white farmers, and then he danced': Trump calls for Malema's arrest He criticised what he called a targeted narrative that only questioned the EFF's role in black unity, while ignoring other parties such as the UDM or Patriotic Alliance (PA), which were not held to the same standard. 'This is not about unity. It's an agenda to destroy the EFF,' Malema asserted. On developments regarding Imogen Mashazi Malema also weighed in on the recent developments involving Ekurhuleni city manager Imogen Mashazi, whose contract is set to expire in August. A request for her to go on special leave has reportedly been made to allow the council to begin appointing her successor. He clarified that the request for leave was expected and not controversial, comparing it to similar practices followed by high-ranking public officials nearing retirement, such as former Chief Justice Mogoeng Mogoeng when his term was coming to an end. 'She has been a good leader,' said Malema. 'We will miss her. She led from the front and was instrumental in achieving clean audits and delivering services.' While questions have been raised about whether Mashazi is owed compensation for her remaining term, Malema said he was unaware of any council resolution regarding an extension or special retirement package. 'There is no special package in retirement. You retire with your savings and benefits,' he explained. He concluded by noting that the EFF was actively involved in governance in Ekurhuleni and would continue to engage in municipal processes, particularly through the mayoral committee. Malema reiterated that the EFF remained committed to its role in Parliament. He highlighted the party's focus on rigorous preparation and meaningful contributions in parliamentary debates and oversight. 'The EFF will continue to play a meaningful role in Parliament. Nothing has changed,' Malema said.
The Herald
7 days ago
- Business
- The Herald
Court dismisses EFF application to prevent fuel levy increase
The Western Cape high court on Tuesday dismissed the EFF's urgent court application to prevent the fuel levy increase, with costs. 'We maintain that taxation without representation is arbitrary and unconstitutional and leaves room for abuse by the National Treasury, which is becoming increasingly desperate in the face of a collapsing economy,' the EFF said. The party said it had always held the view that any form of general taxation must be subject to a vote by democratically elected public representatives in parliament. The EFF said it approached the court in defence of the poor and the working class, who the party alleged had been abandoned by the former liberation movement, the ANC. 'We will study the judgment in detail and reserve our right to pursue further legal avenues. Additionally, the EFF will use its parliamentary presence to introduce necessary amendments to relevant legislation to prevent the National Assembly from bypassing parliament and imposing taxation without proper democratic oversight in future.' TimesLIVE
Bloomberg
03-06-2025
- Business
- Bloomberg
South Africa Gasoline Price Drop Offset by Fuel-Levy Hike
South Africa's first fuel-levy hike in four years offset a drop in gasoline and diesel prices after a court dismissed an urgent application to stop the increase. The retail prices of both 93- and 95-octane gasoline in Gauteng, the country's economic hub, will fall by 0.05 rand per liter Wednesday, South Africa's Central Energy Fund and Department of Mineral Resources and Energy said in an emailed statement Tuesday.
News24
03-06-2025
- Business
- News24
High court rejects EFF's bid to stop fuel levy increase
• For more financial news, go to the News24 Business front page. 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.
