BUDGET 2017: Pain at the petrol pump

Motorists will pay an extra 39c for fuel in April after Finance Minister Pravin Gordhan announced increases in both the fuel and Road Accident Fund (RAF) levies in his budget.

The 2017 budget proposes a 30c per litre increase in the fuel levy and a nine cents per litre increase in the RAF levy‚ effective on 5 April.

No RAF levy was imposed in last year’s budget.

The two levies‚ coupled with customs and excise levies on petrol‚ diesel and biodiesel‚ fund general government expenditure‚ support environmental goals and finance the RAF‚ Treasury says.

Treasury is also currently mulling the potential of removing the zero VAT rating on fuel but adds that “this will be subject to consultation leading up to the 2018 budget”.

“To mitigate the effect on transport costs‚ government will consider combining this with either a freeze or a decrease in the fuel levy‚” the budget review document states.

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