EFF in court to challenge fuel levy
The Western Cape High Court is set to hear the EFF's urgent application on Tuesday to challenge Treasury's fuel levy increases.
Finance Minister Enoch Godongwana proposed hikes of 16 cents per litre on petrol and 15 cents a litre on diesel while tabling his revised budget speech in May.
He attributed the decision, due to take effect on Wednesday, to inflationary pressures.
But the EFF has rejected the move calling it illegal and anti-poor.
Meanwhile, with June's fuel price adjustments due to take effect at midnight, legal expert Sunil Singh has explained the impact of raising the fuel levy.
"With the fuel levy being increased by 16 cents [a litre], as much as government will take out 16 cents more from the price of fuel the impact would be less felt because of the fuel price decreasing. That's going to be a balancing act between obviously the regulator of the fuel price and obviously the fuel levy.
"So, remember, when you buy a litre of petrol government takes a certain percentage of that out and the 16 cents is going to go towards that part of it which will benefit the government coffers."
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