Godongwana proposes inflation-linked fuel levy to bolster revenue

Minister of finance warns of additional tax measures in the future

- DIEKETSENG MALEKE

FINANCE Minister Enoch Godongwana has proposed an inflation-linked increase to the general fuel levy in a bid to increase revenue to protect and bolster frontline services, and he has warned of additional tax measures in the future.

This move comes after the tax proposals, including a VAT increase of 1%, announced on March 12, came under fire politically and were scrapped.

Godongwana said in the context of weaker-than-anticipated global and domestic economic growth, additional revenue and expenditure measures are required to stabilise the public finances.

During his third budget speech this year, Godongwana said that for the 2025/26 fiscal year, this is the only new tax proposal that he is announcing.

"This is the first fuel levy increase in three years. It means from the fourth of June this year, the general fuel levy will increase by 16 cents per litre for petrol, and by 15 cents per litre for diesel," he said.