Political parties and labor unions are happy with the reduction of petrol tax by R3, due to allegations that the government may be hiding a stick in the dirt.
Political parties and unions have applauded the reduction in tax but they say it does not give them peace because the government did not explain who will pay the money that will be lost to the government due to the reduction in petrol tax.
The reduction in petrol tax has relieved the burden on car owners as it has not increased as expected.
The announcement of the reduction in petrol tax was made by the Minister of Finance, Mr. Enoch Godongwana, in collaboration with the Minister of Mining and Petroleum, Mr. Gwede Mantashe.
The petrol tax will be reduced for one month and it has been reduced due to the high price of petrol. The war that is going on in Iran is the reason why oil has increased so much today.
If the tax had not been reduced, the figures showed that petrol would have increased by R6.
In a statement, Godongwana and Mantashe said that the tax was reduced in order to avoid the increase in food and transport costs. They said that the tax reduction will cause the government to lose R6 billion.
“The government will come up with ways to recover the money that will be lost.”
Mantashe announced that petrol 93 and 95 will increase by R3.06. Diesel will increase by R7.37 and paraffin will increase by R11.67. Mantashe assured the people that there is no shortage of petrol in the country.
“The problem of the lack of petrol in some parts of the country is being reported, it is caused by problems with the transportation of petrol and people who buy a lot of it because they are afraid that it will run out.”
The secretary general of the ANC, Mr Fikile Mbalula, said that the reduction in petrol tax will avoid the increase in food prices.
“This is how a government that cares and stands up for the problems faced by the people. We welcome the government’s quick action.”
DA spokesperson for Finance, Dr. Mark Burke, said that they are very happy with the reduction of petrol tax but said that they want to know how the government will recover the money that will be lost.
“The amount of petrol and diesel that has increased is huge, people will bear the brunt of it. We are eager to hear how the government will recover this money. It should not be the tax payers who are expected to be the ones paying this money.”
The union FEDUSA, said that it hopes that the government will not impose a burden by reducing taxes.
“It should not be that since the workers are being relieved of their burden today, then tomorrow there will be a way for the workers to pay the money that will be lost to the government.”