It seems South Africans will face tough times as four taxes are expected to be introduced between March and June, as stipulated in the 2019 Budget Speech.
Layton Beard, Spokeserson at Automobile Association explains the increases:
From March, all toll fees, including e-tolls, will be increasing.
From April, General Fuel Levy will increase by 5 cents per litre.
Road Accident Fund Levy will also increase by 15 cents per litre
In June, the Carbon Tax will be introduced, adding 9 cents per litre to the petrol price and 10 cents per litre for diesel.
He adds that in the 2019 tax year, tax brackets will not be adjusted, effectively presenting as a ‘hidden tax’.
It is really a combination of factors which I am afraid are going to be very severe for all consumers and not just road users.— Layton Beard, Spokesperson - Automobile Association
Even though the toll fees are increasing in line with inflation, the bottom line is a lot of people have not seen salary increases in a couple of years and if they do receive increases, those increases are also in line with inflation.— Layton Beard, Spokesperson - Automobile Association
The bottom line is people are going to be paying more even if they are in line with inflation.— Layton Beard, Spokesperson - Automobile Association
Beard says they are concerned that consumers are already struggling financially, and these taxes means that people are going to be struggling even more.
We would have liked to see a reduction in the levies. We would've liked to not see an introduction in carbon taxes.— Layton Beard, Spokesperson - Automobile Association
And when it comes to toll fees we would've loved to see more engagement with the public not only because of what is happening in Gauteng but in terms of e-tolls generally.— Layton Beard, Spokesperson - Automobile Association
Beard argues that fuel tax is an easy target for government when it needs to collect money.
To hear the rest of the conversation, listen below: