Outa to demand reduction of fuel levy

31 July 2018 - 10:13 By Nomahlubi Jordaan
'Our memorandum also calls for an investigation of the RAF‚ which receives a portion (R1.93) paid to the fuel levy,' Outa
'Our memorandum also calls for an investigation of the RAF‚ which receives a portion (R1.93) paid to the fuel levy,' Outa
Image: ERIC GAILLARD/REUTERS

The Organisation Undoing Tax Abuse (Outa) and other civil action groups will on Tuesday hand over a memorandum to the Minister of Finance‚ calling for a reduced fuel levy.

'The Organisation Undoing Tax Abuse is calling on all South Africans to join the movement to put pressure on government to reduce the price of fuel' said Ben Theron‚ Outa’s chief operating officer.

The organisation is also calling for an independent inquiry into the Road Accident Fund (RAF).

'Our memorandum also calls for an investigation of the RAF‚ which receives a portion (R1.93) paid to the fuel levy.'

'The RAF has been marred with fruitless and wasteful expenditure and an independent investigation will ensure that funds received by the already taxed consumers will no longer go to waste.'

'It’s for this reason we call on a reduction in the fuel levy as external factors like the oil price and the rand/dollar exchange rate can’t be controlled. The reduction of the fuel levy however is a quick win for government as it is within their control and impacts the lives of all South Africans‚' Theron said.

'We understand that a R1 reduction in the fuel levy will impact Treasury’s income by approximately R23-billion per annum‚ however we also know that corruption and maladministration cost this country far more than this amount each year.'

'By reducing the high fuel levies and tax burden on society‚ government will be forced to find the money through improved efficiency and reduced wasteful expenditure‚' said Rudie Heyneke‚ Outa’s portfolio manager.

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