- This follows the recent increase to fuel levies
- While the increase is below inflation, some have criticised it nevertheless
- The Automobile Association of South Africa, for example, says it will hurt poor South Africans
With the recent 29c per litre increase in fuel levies, South Africans will soon be paying a sizeable amount to the government whenever they fill up their tanks.
The Automobile Association of South Africa has warned that this tax increase will hit poor South Africans the hardest.
The AA claims that citizens indirectly pay R5.34 in tax for every litre of petrol they buy- amounting to roughly R280 for a 50 litre tank.
The recent increase in fuel taxes is compromised of a 15c increase to the general fuel levy, along with a 5c increase to the Road Accident Fund Levy and newly-introduced 9c carbon tax.
The AA said it was happy that fuel taxes had not increased above inflation, but expressed reservations about the tax increase nevertheless. The association said a large portion of consumers' fuel spending was now going toward tax, which could be a problem if the fuel price were to suddenly increase substantially.
As evidence, they cited some predictions that petrol prices may increase by up to 50c a litre later in the year, according to The Sowetan.
The association also said that the tax increase would effectively hurt South Africans' pockets twice, since they would also have to pay more for goods and services as a result of the suppliers and manufacturers having to spend more on fuel.
The AA added that this will affect poor South Africans most of all.
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