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       #Post#: 75--------------------------------------------------
       Democratic Alliance Western Cape Fuel Levy
       By: Hawk Date: March 26, 2018, 4:49 pm
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       SOURCE : IOL
  HTML https://www.iol.co.za/news/south-africa/western-cape/proposed-provincial-fuel-levy-has-groups-seeing-red-14072253
       Proposed provincial fuel levy has groups seeing red
  HTML https://image.iol.co.za/image/1/process/620x349?source=https://ana-baobab-prod-eu-west-2.s3.amazonaws.com/public/ana/media/2018/02/14/mana/994/Rand-notes.jpg
       Cash-strapped Western Cape road users could soon be paying a
       provincial fuel levy in addition to the existing national fuel
       levy, which has rights groups seeing red.
       Finance MEC Ivan Meyer said consultants had already been
       appointed to investigate the viability of such a levy and a
       follow-up meeting would be held today for the government to
       receive an update.
       In 2005 the provincial government, then under ANC rule, also
       proposed a levy of between 10c and 50c, and while it was
       approved by then finance minister Trevor Manuel, it was never
       implemented.
       “The constitution allows us to make certain levies applicable on
       services and goods in the province. It can, however, not be done
       by us alone.
       "It is done, in terms of the law, between the government and the
       national minister of finance,” Meyer said.
       According to Meyer, the provincial treasury had appointed
       consultants to conduct a study on the viability of such a levy
       after the provincial cabinet approved it last year.
       “That study will take into account the economic situation in the
       country at the moment and whether consumers would be able to
       afford it.
       "One of the important issues is also to establish who will be
       taking in the money from the levy. We need this money to
       maintain and build roads in our province.”
       Meyer said the impact on the economies of neighbouring provinces
       would also be taken into consideration.
       “It would have to go through the parliamentary processes before
       this would be implemented. We have given ourselves between four
       and five years to establish it. At this stage, we are only
       investigating the possibility of such a levy. Nothing is final
       as yet,” Meyer said.
       Wayne Duvenage, chairperson of Outa, said they were ready to
       fight the levy should it go ahead. “This is absolute nonsense.
       We cannot do this to our people. The government is crippling our
       consumers.
       "They cannot use the excuse of wanting to maintain and build
       more roads. What happens to the monies they receive from the
       National Treasury? South Africans are overtaxed and we will not
       stop,” he said
       Golden Arrow spokesperson Johan Dammert said: “An additional
       provincial fuel levy will impact our cost structures, which have
       already been affected by increases in VAT and the national fuel
       levy.
       "In order to absorb the impact of these  increases we would have
       to critically assess all aspects of our operations, which would
       include, inter alia, streamlining overheads and reviewing
       revenue streams to ensure that the public transport service we
       provide remains affordable and sustainable.”
       Carol Beerwinkel, ANC spokesperson on finance, said that
       although the ANC had proposed the levy years ago, the economic
       situation was much different.
       “The total spend on consultants has increased by 29%, from R20
       million to R26m, and the reason given is that you want to invest
       in a study for a fuel levy?
       "Why would a province which is part of a unitary state where
       such policies are determined by national government want to even
       think about something like this?
       "This is totally unacceptable. This Budget is supposed to be for
       the people, yet you grandstand about the implications of a VAT
       increase but in the background you plan this,” she said.
       Cosatu Western Cape secretary Tony Ehrenreich said: “We will
       oppose this levy."
       Cape Argus
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