WILL TREVOR MANUEL CUT FUEL TAX? June 9, 2008
Posted by frostygirl in News.trackback
Did you know that about one-third of the pump inland unleaded petrol price, which stands at R9.96 a litre, consists of taxes and levies.
Well a promising bit of news came today when minerals and energy minister Buyelwa Sonjica said that she would make a proposal to finance minister Trevor Manuel to cut fuel tax. “I am going to engage the minister of finance with a view to exploring possible steps with regard to the tax regime following these unacceptably high oil prices,” Sonjica said.
Apparently President Nicolas Sarkozy of France has proposed that value-added tax on fuel be suspended when oil prices are high.
There are two other important measures which were also announced and they are:
A new coal-to-liquids plant to be build by PetroSA
Resuscitation of a deal under which a 1 000 megawatt power plant will be built by an independent power producer.
It is encouraging to note that some positive steps are being taken to help the South African economy and people.
Now we can just hope that Mr Trevor Manuel will be brave enough to agree to the proposal, even if it is just until the oil prices come down to an acceptable level and stabilise.
Popularity: 42% [?]
The huge variation in the cost of fuel around the world, compared with the relatively small variation in the cost of crude, is an indication of the sometimes enormous amount of tax the governments are raking in. I don’t know what the exchange rate is for the rand against the euro but I’ll go and have a look in a minute.
In the UK there is fuel tax at 53 pence and then VAT on top of that, so you’re paying VAT on the fuel tax as well as the fuel. The same in Germany and the Netherlands. It just escalates the current problems. If it were truly a green tax, they wouldn’t be looking to solve the problem by asking producers to increase production.