Finance Minister Enoch Godongwana said he is applying his mind to the extension of the fuel levy.
Image: Phando Jikelo/ Parliament of RSA
Finance Minister Enoch Godongwana will announce next week whether the R3 fuel levy reduction will be extended, following calls from Build One South Africa leader Mmusi Maimane amid ongoing Middle East conflict.
Last month, Godongwana announced the fuel levy reduction from April 1 to May 5 and indicated that the relief measure would be re-evaluated monthly for the following two months.
Speaking during a debate on the Division of Revenue Bill on Tuesday night, Maimane thanked the minister for hearing the cries of consumers and reducing the fuel levy by R3.
“I want to thank you for that. I want to ask you again that next month and the month that is coming, given the continued war, we must do something,” he said.
Maimane said SARS Commissioner Edward Kieswetter has stated that the revenue service has R2 trillion and exceeded collections.
“If we can afford it as the government, let us assist our people. They are suffering,” Maimane said.
In response, Godongwana noted that Maimane mentioned that SARS made a major achievement in collecting R2 trillion.
“What he misses is that the expenditure is R2.43 trillion, which means we are R400 billion short. In addition to that R400 billion, the debt service costs are also of a similar amount. This means that we must borrow R800 billion,” he said.
Godongwana further said that it did not mean that he was not applying his mind to the extension of the fuel levy. “I am applying my mind to that issue.”
He said he had promised South Africans that at the end of the month, he would do a review after consulting Mineral and Petroleum Minister Gwede Mantashe.
“I will probably make the necessary announcement on Tuesday, April 28, in that regard,” said Godongwana.
At the time the fuel levy reduction was announced, the two ministers stated in a joint statement that Mantashe would continue work to review fuel pricing over the medium term.
“Work is under way on a broader package of measures to support households and key sectors of the economy. Further details on additional support measures will be announced in due course.”