Cape Town - The Western Cape government is going ahead with a study into the possibility of a provincial levy over and above the national levy currently imposed on motorists.
Added to that, the government announced on Thursday that another fuel price increase was on the cards next month.
Harry Malila, the head of the Western Cape Treasury’s fiscal and economic services, said an outcome on the study would be released in the next nine months.
He said the study would take into account alcapel factors.
“The service provider is still busy with the study and will take between six and nine months. There is a lot of legislation that has to be considered. We will also do an economic assessment that will be part of the study. We need the money because of the constrained financial situation we are in. Also, the investment towards roads is good for economic growth that will lead to many other positive spin-offs for the province,” he said.
In 2005 the provincial government, then under ANC rule, also proposed a levy of between 10c and 50c, and while it was approved by then finance minister Trevor Manuel, it was never implemented.
Meanwhile, Communications Minister Nomvula Mokonyane said yesterday, that another fuel price increase was anticipated next month.
Mokonyane’s statement follows a national cabinet meeting on Wednesday.
“The brent crude oil dollar denominated price has been affecting the general prices of petrol, diesel and paraffin. Our currency’s exchange rate to the US dollar has fallen by more than 1% since the beginning of May,” she said.
Mokonyane said the government was making an effort to alleviate the challenges faced by poor communities.
“The National Treasury has appointed a nine-member panel of experts to review the list of VAT zero-rated items, currently consisting of 19 basic food items. The cabinet appeals to the private sector to lend a hand, by delaying transferring the impact of the fuel prices to the consumer. This will go a long way in cushioning the poor,” she said.
DA MP Manny de Freitas said: “The ANC government has mismanaged the economy and allowed corruption to erode public money, which has landed us in this situation. Instead of playing politics by pleading with themselves to rectify the mess they have created, they must act to bring relief to ordinary people.”
@JasonFelix