Johannesburg - Although the 2019 fuel levy increases, announced by Finance Minister Tito Mboweni during Wednesday’s Budget Speech, were lower than the previous year, the new ‘carbon tax’ element is ruffling more than a few feathers.
Fuel levies are being increased by 29 cents in the case of petrol and 30 cents for diesel, but of this 9 cents (petrol) and 10 cents (diesel) form part of a new carbon tax that will come into effect on June 5.
However, this new tax comes across as “cynical abuse” of public sentiment under the guise of tackling climate change, says Heinrich Volmink, executive head of The Organisation Undoing Tax Abuse (OUTA).
“Introducing a carbon fuel levy without a clear indication that this will be ring-fenced for climate change mitigation initiatives, and with no clear link to behavioural change, appears to be disingenuous,” Volmink said.
Instead this carbon tax on petrol appears to be just another revenue stream for government’s coffers, Outa added in a statement released after the Budget Speech.