Motorists to fork out more
Feb 11 2009 14:29
Marc Hasenfuss
Cape Town - Motorists will fork out more for a tank of petrol from April this year.
Finance Minister Trevor Manuel said as road-users South Africans had gained some advantage since mid-2008 from lower international oil prices.
"As road-users we also know that there is a substantial increase in spending on maintenance and construction under way, and we still face a heavy burden of road accidents and associated compensation claims."
Outlining the rationale for increased levies on petrol and diesel, Sars' tax proposal booklet noted the importance of maintaining a strong price signal "to limit fuel consumption, road congestion and environmental impact.
He explained that these costs had to be covered, necessitating increases in the fuel levies on 1 April this year of 23c and 24c respectively for general petrol and diesel levies, and 17.5c in the road accident fund levy.
As indicated last year, Manuel said it was proposed that the general fuel levy should form part of a new municipal revenue arrangement to replace the former Regional Service Council levies.
He said that in 2009/10, 23% of the general fuel levy will be earmarked for metropolitan municipalities to support expenditure on roads and transportation infrastructure.
- Fin24.com