Fuel levy hike to hit motorists

2011-02-23 14:12 - Greta Steyn
Pretoria - Vehicle owners, already hard hit by the oil price increase, face an increase in the fuel levy by 10 cents per litre on petrol and diesel effective from April 6 2011.

The Road Accident Fund levy will be increased by 8c/litre on the same date.

Taxes as a percentage of the pump price in Gauteng as in February fall to 29.6% from 31% for 93 octane petrol, and to 30.3% from 32.6% for diesel.
Another whack to electricity users is the increase in the levy applied to electricity generated from non-renewable and nuclear energy sources by 0.5c/kWh to 2.5c/kWh from April 1 2011.

Some of this revenue will be set aside to fund the rehabilitation of roads damaged as a result of the haulage of coal for electricity generation.

The increase should have no impact on electricity tariffs, because it has already been taken into account in the National Energy Regulator tariff structure.
As part of its response to climate change, government is considering a carbon tax. A discussion paper entitled Reducing Greenhouse Gas Emissions: The Carbon Tax Option was published for public comment in December 2010.

Comments are due by the end of February 2011.

The design features of a proposed tax and a schedule for its introduction will be announced in the 2012 budget. 

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