Why government would fall short of cash if the fuel levy is scrapped

Calls have come from many quarters to do away with the general fuel levy, given its contribution to the record-breaking price of fuel. Yet, it also contributes R90-billion to the fiscus and experts contend that, should it be scrapped, the government would have few ways to raise a similar amount. 

The general fuel levy is a tax on each litre of fuel sold and is pegged at R3.93 a litre (up from R3.77 last year). The Road Accident Fund levy is R2.18 a litre (up from R2.07 last year). Combined, they add R6.11 to every litre of petrol and diesel sold in the country, according to the Automobile Association. 

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The post Why government would fall short of cash if the fuel levy is scrapped appeared first on The Mail & Guardian.

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