Minister of the Presidency Khumbudzo Ntshavheni says the government will study and report back on the implication of the fuel levy on fuel prices.
Image: GCIS
Minister in the Presidency Khumbudzo Ntshavheni said on Thursday that the EFF was within its rights to approach the courts over the increase in the fuel levy proposed by Finance Minister Enoch Godongwana.
Addressing the media after Wednesday’s Cabinet meeting, Ntshavheni said she had no idea what argument the EFF had made in their court papers.
“But we have always had a fuel levy in this country as government, and shortly we will come back on the implication of the fuel levy on the fuel prices in the country as we try to mitigate the high cost of living in the country.
“They can go to court. They are entitled to go to court, but it does not stop us from proposing a budget. The fuel levy has been part of the budget or South Africa since time immemorial,” she said.
Ntshavheni made the comments as the EFF announced that it had filed an urgent application in the Western Cape High Court on Thursday to interdict Godongwana from increasing the fuel levy by 16 cents and diesel by 15 cents.
Godongwana had announced the proposed fuel levy when he tabled the budget earlier this month after he scrapped the VAT increased amid a court case that was instituted by the EFF and the DA as well as negotiations between the ANC and smaller parties.
In a statement, the EFF said it took the action after repeated efforts to caution and appeal to Godongwana, to consider the impact of the increase in the fuel levy on the poor and working class when the cost of living was deepening.
“We also reminded him that that, just like the VAT increase, raising the fuel levy without introducing a proper Money Bill is unlawful and undermines parliamentary oversight."
The red berets had also written to National Assembly Speaker Thoko Didiza and finance standing committee chairperson Joe Maswanganyi, warning against adopting the 2025 fiscal framework and revenue proposals that included the fuel levy as doing so would place the entire budget process in jeopardy.
“This matter is urgent not just because of its legal implications, but because the fuel levy directly affects the price of transport, food and other essentials. Any increase will hit the poorest the hardest,” said the EFF.
Meanwhile, the Cabinet has affirmed its support for the 2025 national budget that was tabled by Godongwana on May 21.
Ntshavheni said the budget detailed key spending priorities over the next three years within the country's fiscal envelope.
“The national budget has demonstrated our commitment to fiscal discipline. We have shown that we are steering the economy in the right direction that looks after the most vulnerable in our society, while investing in economic activities through investment of R1 trillion towards infrastructure over the coming three years.”
She also said the pro-poor budget meant that every 61 cents of consolidated non-interest expenditure funds will be spent on free basic services like electricity, water, education, healthcare, affordable houses and social grants for the needy.
Asked whether all the Government of National Unity parties will vote in favor of the budget, Ntshavheni said they expected that to happen, but the parties have to be asked individually.
“As I have indicated, in all the times that we have at the Minister of Finance has gone to present the budget, they have always been in agreement in Cabinet saying, this is the budget we are going to support, despite its weaknesses,” she added.
Ntshavheni also said the Cabinet welcomed the reset of strategic relationships between South Africa and the United States during President Cyril Ramaphosa’s working visit to the US at the invitation of President Donald Trump.
She said the South African and US teams will finalise the details of the trade deal the two countries would clinch.
“The objectives that the South Africa team had set for the trip have been met.”
Ntshavheni also said the Cabinet looked forward to the continued participation of the US administration in the G20 summit, including the possible attendance of Trump to the G20 Leaders Summit in South Africa later this year.
Highlighting some of the things featured in the trade deal, Ntshavheni said they still have to discuss the tariffs, including the non-tariff barriers.
“It is a basket of offerings that have been tabled through the Department of Trade, Industry and Competition working with the Department of Mineral Resources and Petroleum, Department of Agriculture, Department of Energy, and other departments in that space.
“So the deals will be signed as they are finalised … As the areas of agreement are reached, it will be implemented. We hope, of course, the US remains one of our strategic partners,” she said.
mayibongwe.maqhian@inl.co.za