call to reduce fuel taxes
06 May 2008
Trade union Solidarity has called on government to temporarily reduce fuel taxes. "Government must intervene to prevent an economic crisis," spokesperson Jaco Kleynhans said on Tuesday. The price of petrol is set to increase by 55 cents to R9.46 per litre while diesel will go up by 71 cents at midnight on Tuesday.
"Solidarity today (Tuesday) on the eve of the drastic fuel price increase, repeats its urgent call on government for a temporary reduction in fuel taxes," he said.
Solidarity added that government annually raised the price of fuel while the number of consumers continued growing. "This means that government's income from the levy keeps going up. The 2007/2008 budget shows a surplus of more than R20.3-billion, while consumers have to put up with price increases".
The union was also concerned about the effect the increase would have on the mining and agriculture industries, the industries "that will be hardest hit" after private consumers. "Mining is responsible for approximately 7.12 percent of the country's total diesel consumption. Agriculture uses approximately 7.78 percent of the national diesel supply. These two industries are by and large the mainstays of the South African economy and they will be very hard hit by the latest price increases."
The increase would affect consumers, who would soon be paying more for food.