Cape Town – Deputy President Paul Mashatile says that Finance Minister Enoch Godongwana considered several revenue-raising options, including a wealth tax and corporate taxes, before deciding to increase the fuel levy.
Godongwana revealed in his budget speech last week that fuel levy increases will take effect next Wednesday.
Despite opposition from the Economic Freedom Fighters (EFF), who have filed a court challenge against the hike, Mashatile emphasised that the decision was carefully evaluated, EWN reported.
The EFF filed an urgent court application, arguing the levy increase is unlawful without a proper Money Bill and warned it would hurt the poor by raising the cost of essentials.
Cabinet supports the 2025 national budget, which includes R1 trillion in infrastructure investment over three years.
“The proposals that the EFF is talking about were also examined. They talk about the wealth tax and corporate taxes. All these things were examined by the minister, and he had to decide which instrument can be used at the moment,” the report quoted Mashatile as saying.
Earlier, according to IOL, Minister in the Presidency Khumbudzo Ntshavheni said the EFF is within its rights to legally challenge the proposed fuel levy increase.
She noted that the fuel levy has long been part of South Africa’s budget and emphasised that the government’s right to propose a budget remains unaffected by the court action.
“But we have always had a fuel levy in this country as government, and shortly we will come back on the implication of the fuel levy on the fuel prices in the country as we try to mitigate the high cost of living.
“They can go to court. They are entitled to go to court, but it does not stop us from proposing a budget. The fuel levy has been part of the budget of South Africa since time immemorial,” she said.
Ntshavheni said all Government of National Unity parties are expected to back the budget.
