Metros' R14bn windfall from Mboweni
Johannesburg - The country’s eight metropolitan municipalities will share a windfall of over R14 billion in fuel levy revenue to build and maintain their roads.
Finance Minister Tito Mboweni announced on Friday that the City of Johannesburg will get the biggest share of the R14bn with almost R3.7bn while eThekwini will receive just above R2.85bn for the 2020/21 financial year.
The City of Cape Town receives about R2.6bn and Ekurhuleni’s share will be more than R1.78bn and the City of Tshwane will get nearly R1.5bn.
According to the notice published in the Government Gazette on Friday, the Nelson Mandela Metro will receive almost R707 million and Buffalo City gets R593m and the troubled Mangaung Metro’s share will be R320m.
In the current financial year, the municipalities’ shared nearly R13.2bn.
During his budget speech last month, Mboweni announced that the fuel levy will increase by 25 cents per litre, of which 16 cents is for the general fuel levy and nine cents is for the Road Accident Fund levy.
The general fuel levy was a fund for building and fixing roads.
In terms of the Taxation Laws Amendment Act 2009, Mboweni must for each financial year determine an equitable allocation to be made to each metropolitan municipality and this must be a fixed percentage of revenue raised from the collection of the general fuel levy.
The percentage contemplated is fixed at 23%.