R239 of your R688 for 50 litres of petrol go to taxes

AS of April 1, R3.15 of every litre of petrol motorists use, will go towards the fuel levy.

Add to this an additional R1.63 a litre which will be paid to the Road Accident Fund (RAF).

This follows finance minister Pravin Gordhan’s announcement in his budget speech that an additional 30 cents a litre is to be added to the general fuel and an additional nine cents a litre toRAF levy.

“Effectively this means that for every litre of petrol motorists are paying R4.78, or 35 per cent, on indirect taxes. This is a huge amount, and calculated on a 50 litre tank of fuel, amounts to R239, the AA said in a statement.

Using the current price of a litre of 93 unleaded fuel of R13.38 inland, and R13 at the coast, the increases will push the price to R13.77 a litre, and R13.39 a litre, the association said.

“Using the current figures, filling a 50 litre tank of petrol will cost R688.50 (inland) and R669.50 at the coast,” the AA said.

The association noted this increase came amid widespread apathy towards other taxes on motorists, for instance, the funding model of the Gauteng Freeway Improvement Project (GFIP).

“We have long called for a portion of this fuel levy to be ring-fenced and used for projects such as Gauteng’s e-tolls. But the money collected through this levy does not go towards this, although it makes sense to do so. Instead motorists must pay extra taxes for the use of the roads,” the AA noted.

“Motorists remain easy targets for revenue collection although many are suffering as a result of increases to the fuel price. This is particularly prejudicial to motorists especially in the context of a lack of proper, reliable public transport,” the association said.

The association said it believed the time was right for a review of the fuel and RAF levies.

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