RFA bemoans fuel increase, carbon tax

Johannesburg - The announcement of a fuel hike and a carbon tax will affect business, the Road Freight Association (RFA) said on Wednesday.

"Already faced with numerous rising costs, the proposed carbon tax will have a serious impact on the cost of logistics, rendering road transport uneconomical" RFA spokesperson Gavin Kelly said in a statement.

He said the road freight industry was one of the highest taxed sectors in the country. Fees in the sector included road user charges, cross-border taxes, toll fees, vehicle licensing fees, inspection fees, and other legal requirements.

Last week, Finance Minister Pravin Gordhan announced a carbon tax of R120 per ton of carbon dioxide-equivalent. This is due to be implemented in January 2015.

There would also be an increase in fuel costs on April 3. This included an increase in the general fuel levy of 15 cents a litre, and 8c a litre for the Road Accident Fund.

The general fuel levy was expected to contribute about R3.2bn in revenue for the 2013/14 fiscus.

A third of the fuel levy went to the fund, Gordhan said.