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Cape Town - Finance Minister Pravin Gordhan insisted on Tuesday that calls for the National Treasury to reserve the fuel levy for road construction will require an increase in the tax of nearly R1 per litre.
"Those asking for the earmarking of the general fuel levy should be careful what they wish for," he told the National Assembly after introducing the rates and monetary accounts and amendment of revenue laws bill.
"The total funds spend on roads and public transport is more than what is collected from the general fuel levy."
He said that for the 2012/13 financial year, the National Treasury had budgeted more than R70bn for roads and transport, while it was expecting to collect only R42.8bn in revenue from the levy.
"In sum, earmarking will mean that fuel levies will have to increase by another R16.5bn to cover the perceived shortfall equivalent, an increase of almost R1 in the fuel levy - a sum motorists can barely afford. We have, instead, funded this from general tax revenue."
The fuel levy will increase by 20 cents, or 15%, on April 1.
Several lobby groups have said a bigger increase in the fuel levy would be a better alternative to the unpopular e-tolling system that would be introduced on April 30 to pay for the Gauteng Freeway Improvement Project.
"Those asking for the earmarking of the general fuel levy should be careful what they wish for," he told the National Assembly after introducing the rates and monetary accounts and amendment of revenue laws bill.
"The total funds spend on roads and public transport is more than what is collected from the general fuel levy."
He said that for the 2012/13 financial year, the National Treasury had budgeted more than R70bn for roads and transport, while it was expecting to collect only R42.8bn in revenue from the levy.
"In sum, earmarking will mean that fuel levies will have to increase by another R16.5bn to cover the perceived shortfall equivalent, an increase of almost R1 in the fuel levy - a sum motorists can barely afford. We have, instead, funded this from general tax revenue."
The fuel levy will increase by 20 cents, or 15%, on April 1.
Several lobby groups have said a bigger increase in the fuel levy would be a better alternative to the unpopular e-tolling system that would be introduced on April 30 to pay for the Gauteng Freeway Improvement Project.
